@Anonymous wrote:
Wasn't sure where to ask. I had to leave school back in 2015 and I defaulted on my federal student loans then. As of today they are still reporting on my credit files and also late payments. There's 6 total when it should only be three. They have different default dates. 3 are 2015 and three are 2018. First should these still be reporting since it's been over seven years? I know I need to pay them but it's hard when I know it wouldn't improve my credit and I know they should already have stopped reporting. Where can I go for help? I've already tried disputing them myself with no luck. These are the only collections/defaults I have and I'm trying to purchase my first home.
I believe straight up you cannot get a mortgage if you have defaulted federal loans. Also Fed Loans never disappear, even if they come off your credit reports.
If you want to purchase a home, put the SLs through rehab - do not simply pay them off - paying them or even the offer of consolidation will *not* remove the defaulted SLs or the default marks. Even if you have the money to pay them, wait until the entire rehab process is complete and fully transferred to a new lender and reporting on your credit reports to pay them off or you may stop the process from completing properly (has happened to others recently) The only way to do that is to rehab them. Now you say 2015 they defaulted, so it has not been 7 years. That would make it 2022 when they will age off.
Completing rehab absolutely should help your scores and definitely your credit profile.
Right now rehab has $0 payments thru 9/2021, so if you sign up now, you will only be required to make 3 actual payments. I would take this very rare opportunity.
It is also correct that there are 6 SLs on your credit reports.
3 are the original student loans and the other 3 are the corresponding collection accounts. Likely one set is FedLoan and the other set is the US Dept of ED.
When (if) you complete rehab, the 3 from the US Dept of ED will be removed. The other 3 may remain, with the lates intact. Some get lucky and they are removed. Regardless, lates should be aging off over the next year or so, depending on exactly when they happened. Basically when each hit 7 years old.
I would pull all 3 credit reports from annual credit report for free (can do this weekly thru 4/2022 - no scores). Each report will spell out when the entire account will age off. TU will list "estimated date of removal". EX will list "on record until" (which will be correct even though it will be different than EQ and TU). EQ will list "date of first delinquency" (*not* the also listed "date major delinquency first reported"). Add 7 years to that date and the accounts should age off the month prior to that date.
Good luck!
