My father's Experian Credit Report shows two defaulted loans currently as active collection accounts with specific amounts past due...
*Just to be clear, these are Federal Direct Consolidated Loans, and they are listed in the credit report under the US Department of Education; the loans were made directly with the Federal government and never involved any third parties other than collection agencies hired*
However, these accounts started reporting in 2001, and according to the credit report, they are both "scheduled to continue on record until Nov 2008".
I've read about this and it's surely been asked many times, but I keep seeing contradictory information. Will those two defaulted student loans be taken off the record on November 2008 as the credit report says, because of the 7 year rule??... Or will they just be reported again after November when the 7 years is up because they'll still be in collections??..
I've been told that it's 7 years from the time the account is closed, but I've also been told it's 7 years from the time the loan went into default...and that the law protects borrowers from having negative accounts like these reported over and over again every time 7 years goes by?
Like I said, according to the credit report both accounts are scheduled to remain on record "until Nov 2008"...
So what will happen?
Message Edited by Sagan1942 on 07-31-2008 09:26 AM
