Co-Signer On closed student loan.. Need Help!

Madyun1982 · ‎01-02-2019

Hello Everyone.. I co-signed for a loan back in 03.

The loan was closed in 2103.. Payments were made but it was still being reported as failure to pay.

The loan has since been paid off last month. Will the late payments continue to hurt me when I apply for credit?

If so is there a way to get the late payments deleted? It's a private student loan through firstmark.

Any advice will help. Thank you all in advance

Brian_Earl_Spilner · ‎01-02-2019

Yes, they will hurt you, and unlike most things on your credit, student loans will usually be reported longer than 10 years. IIstill have private loans from 2000 showing on my report. You should reach out to them to fix it. If they don't, file disputes. If that doesn't work, file a complaint. If that doesn't work, file a lawsuit.

Madyun1982 · ‎01-02-2019

Thank you for responding.. I am going to try and contact them now to see what my options are..

Hopefully they will remove the lates.. It shows that the closed account is due to fall of my credit report in 2020

But that seems so far away.. LOL especially when most of my credit denials are due to late payments etc..

Anonymous · ‎01-02-2019

I'm guessing they were closed in 2013? No, they don't have to remove the lates. They will fall off in due time, but they are not obligated to stop reporting it just because it's a closed account. Now since it was just paid off last month there is a chance that they might....but unlikely. Yes it will affect you applying for credit, depending on the severity of the lates. If you're sure all the lates are accurate, I would attempt to write Goodwill letters. But honestly in a year it will right itself so it may not even be worth it.
Another thing to think about is if this is your only loan on your account, when it falls off you will miss out on points for credit mix.
Hope this helps.

jim44 · ‎01-15-2019

@Madyun1982 wrote:
Thank you for responding.. I am going to try and contact them now to see what my options are..
Hopefully they will remove the lates.. It shows that the closed account is due to fall of my credit report in 2020
But that seems so far away.. LOL especially when most of my credit denials are due to late payments etc..

Please let us know your results. I too co-signed on a SL for a family member and although there has never been over 30 days, there are still 10 years left to pay on this loan. I have an alert sent to my phone as well as email alerts when the montly payment is past due. I've already made 2 payments in the last 10 years to avoid a 30 day hit. If I had a chance to do it all over again....................

Anonymous · ‎01-16-2019

The reasons they give you when you are denied credit are basically the negative items on your credit report. It is not necessarily why you were denied credit. Unless you have some major lates such as 90 days out more - and even then unlikely - that is not the reason it at least the some reason you are being denied credit. The effects of 30 and 60 day lates are pretty much gone by now.
If you give more information someone could probably tell you what other area of your profile is holding you back.
You can also ask for early exclusions as soon as 6 months early, so you really don't have that long to wait before you can get this removed.

bondsandloan · ‎01-24-2019

@jim44 wrote:Please let us know your results. I too co-signed on a SL for a family member and although there has never been over 30 days, there are still 10 years left to pay on this loan. I have an alert sent to my phone as well as email alerts when the montly payment is past due. I've already made 2 payments in the last 10 years to avoid a 30 day hit. If I had a chance to do it all over again....................

If you had a chance to do it again, what would you do?

Anonymous · ‎01-25-2019

That's an odd question.

However, I will tell to anyone who will listen that unless the borrower will be making some extremely high, almost guaranteed salary, this is not a good option. Wage stagnation had created a situation where you can't afford not to get a degree but most people are going to be stuck with student loans they will never be able to afford pay off. It is the largest and fastest growing debt in America. Federal student loans will at least grant student relief in hard times and low wages, as well as grant forgiveness so that you're not paying until old age.

Private loans have no such protections. Unfortunately, banks also convince people to do things the old way of parent loans, co-signers and low APRs, knowing that students will never be able to afford it. They'll let their money from someone though.

Federal loans are the best option. Ideally, plan to try to get the student loan as an independent borrower. PLUS loans should be a last resort because most of the protections have been removed.
Just my two cents.

jim44 · ‎01-25-2019

@bondsandloan wrote:
@jim44 wrote:Please let us know your results. I too co-signed on a SL for a family member and although there has never been over 30 days, there are still 10 years left to pay on this loan. I have an alert sent to my phone as well as email alerts when the montly payment is past due. I've already made 2 payments in the last 10 years to avoid a 30 day hit. If I had a chance to do it all over again....................
If you had a chance to do it again, what would you do?

I think I would have met with my family member to ask their goals for the future and how going to school would benefit them in the future. I would have thought more about the impact on my credit and whether I would be able to step in and be responsible for this loan if my family member met with hard times or he just decided to stop paying for whatever reason. I would have done more research into the complete responsibilities of a co-signer. Lastly I would have looked over the loan app more closely to see if it was private vs federal backed, the lenght of the loan, a fixed vs variable apr and my family member's credit history. I really respect this family member but knowing back then what I know now I would haven't co-signed.