Defaulted Student Loans

[Bronxbomber]

Hey first I want to thank you guys in advanced. This site is Awesome!

Here is my situation. When I was 18 (13yrs ago) I went to college for a while. Took out a few loans then dropped out. Being 18 and stupid, I never paid the loans. Not a dime for several years. 4 Years ago I paid off the entire student loan. I owe them nothing. My credit score jumped into the low 600s after that. Now my question is, Will the student loan ever be removed off of my credit report? Or is this something that I am going to have to wait 7 years for? It's very upsetting because it is the only negative, well that and credit history, on my credit report. I have never missed a payment on any credit card or on my auto loan (Which I also paid off a few years back).

My goal is to reach the 700 plateau this year. I know it will be tough but I am extremely dedicated or better yet, obessesed over my score. I would like to buy a house next year and the lenders in NY are not talking to anyone unless your score is 730 and above.

Thanks guys!

Bronxbomber

[Anonymous]

Are these negatives being reported by the original lender, the guarantor, or both? If they are from the OL then yes they will remain there for the entire 7.5 years because they are required by law to report accurately.

Message Edited by jaystay on 03-10-2010 08:50 AM

[MarineVietVet]

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@Bronxbomber wrote:

Hey first I want to thank you guys in advanced. This site is Awesome!

Here is my situation. When I was 18 (13yrs ago) I went to college for a while. Took out a few loans then dropped out. Being 18 and stupid, I never paid the loans. Not a dime for several years. 4 Years ago I paid off the entire student loan. I owe them nothing. My credit score jumped into the low 600s after that. Now my question is, Will the student loan ever be removed off of my credit report? Or is this something that I am going to have to wait 7 years for? It's very upsetting because it is the only negative, well that and credit history, on my credit report. I have never missed a payment on any credit card or on my auto loan (Which I also paid off a few years back).

My goal is to reach the 700 plateau this year. I know it will be tough but I am extremely dedicated or better yet, obessesed over my score. I would like to buy a house next year and the lenders in NY are not talking to anyone unless your score is 730 and above.

Thanks guys!

Bronxbomber

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Welcome to the forums.

Can I assume this went to a charge off or collection? When was the DOFD? (Date of First Delinquency)

[Anonymous]

If this went to a collection agency the mark on your report from the collection agency normally is removed when you pay them and the charge off from the original creditor stays on the CR 7 years after the date of the last activity on that account. If you paid the originall creditor you could ask them to remove it. That may be difficult since you already paid it in full. It may have been easier if you used that as leverage when you went to pay off the debt. Good Luck

[MarineVietVet]

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@Anonymous wrote:

If this went to a collection agency the mark on your report from the collection agency normally is removed when you pay them and the charge off from the original creditor stays on the CR 7 years after the date of the last activity on that account. If you paid the originall creditor you could ask them to remove it. That may be difficult since you already paid it in full. It may have been easier if you used that as leverage when you went to pay off the debt. Good Luck

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This is not quite correct.

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency.  The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR.  Their post as a charge-off will remain in your CR for 7.5 years from the DOFD (Not Date of Last Activity) on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That cannot be reset.  

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO.  It is 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

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