Consolidation Questions. Help!

[Anonymous]

Background:

I graduated in 2005, right after that, was that time period that the government gave a deadline to consolidate all your student loans to plug in a fixed rate... It was around end of 2005 beginning 2006. So, I did, and made SURE that all my loans were included.

Now.. here are the questions.

Situation 1: On my credit report, It shows 3 different lenders. Great Lakes, then Texas Loan, now Nelnet. Nelnet is who I consolidated all of my loans with and they are holding EVERYTHING! BUT.... At the beginning of my education, Great Lakes was holding, then something happened .. I dont know what, but all my loans were now property of Texas Loan (I was STILL in school and they were government student loans, so I was in no need to start repayment, even not the interest, until graduation). I think the financial aid officer said something changed in the law or something, but they were using another lender... ??? . Anyway.. So Texas Loan finished out my schooling, then I had 1 pell grant through my school itself for 5500 (in addition) (out of state grad school is expensive! LOL). So then after graduating, I made the deadline to consolidate and it went smooth and ive went into deferment a couple of times, but everything is cool now. But ALL of the lenders and amounts still show up on my CR, no late payments,for years, and it DOES say for the non-open lenders that it has been consolidated to another lender.

So 2 questions:

1) Even though there is EXCELLENT repayment history on all account from lenders still showing up, should I try and get all that extra baggage off my CR, since there is just ONE lender that I am paying now, so it would be that thing that they call when a debt is reported move than once and you can have it removed.  Or should I keep all of them on the CR because it shows good credit history from the repayments... Because the balances were slightly heafty amounts. between 20-45K.

2) I dont know how to fix one thing. The pell grant that I took out from the school and the school itself was the lender. When I consolidated everything the last time... I made sure to include that in the consolidation. I moved for a job and a few months later I finally received a letter and my school said they didnt receive the payment from the consolidation people and now I am 120 days past due. I called both parties and lender said that they sent the check, called the school and they gave me some story, but said... Oh, yeah.. we found it and its all paided off. NOW, on my credit report is says 120 days past due.  How can I get this reversed and/or taken off, and who/which instituation should I talk to.

Im a first time writer and trying desparately to increase my bad credit score from being irresponsible in the past.

Thanks.

[SCF]

Hey tenneil, and welcome to the forums!

To answer your questions:

1) Are the original TLs (tradelines) reporting as Closed/Consolidate/Refinanced (or some variation) with a balance of $0?  If so, these are accurate and you cannot dispute them and you should not, as they are probably helping your AAoA (average age of accounts) and they are doing you no harm whatsoever.  You took out however many individual loans, then you took out a new consolidation loan which paid off the original individual loans, and it sounds like your reports reflect that history.  No lender in their right mind will hold having consolidated your SLs against you.

2) I would call your consolidation lender (since it sounds like you're getting a bit of the run around) and confirm when, how and to who they sent the payment.  With this information in hand, call your school and inform them that you were not late in paying because the consolidation payment was sent before your payment came due (offer proof here if neccessary) and ask them politely to modify their reporting to the CRAs.  If they agree that you were never late, they MUST report that accurately.  And if they want to make the case that you were late, you may have to fight that with them using the proof from your consolidation lender.  I would imagine that they will update their reporting with a minimum of fuss if you can show that they recieved payment before the due date.

Hope that helps!

[Anonymous]

Thanks..

I still have to take the time to sit down and learn all the financial lingo. But thats what I was thinking in regards to the SL's that it was actually HELPING my score and not hurting. And yes, they all say $0 balance and consolidated.

With the second question.. Yeah. I need to get in writing from both parties (primarily my current lender who payed them) the date of the check, the date sent, and date received (if possible), and date cashed (if possible). Then just present that info to the school... Yeah. I dont think they will be mean about it, and should change it.  But it never hurts to be polite and nice while asking! lol.

I HATE finance, I never have understood it... now put me in a science situation and Im ALL GOOD! LOL !

Thanks for your help!

[LynnInMN]

Tenneil...think you are confusing Pell Grants with Perkins Loans.   Pells are  grants...that  is free money and is  not repayable.  Even pell overpayments cannot be consolidate.  Sounds like you had a perkins loan thru the school.