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Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to do?

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Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to do?

Hello All, This is my first post.

 

I've spent many hours reading and gaining advice from these forums and am thankful for how helpful it has been. 

Would appreciate the wisdom of the community on this one. 

 

I had a Sallie Mae Private Student Loan that I took out for undergrad on Oct 20, 2006. Right before 2008/2009, that period when it felt like the world was going to explode! The loan was for 25k and I began paying on it when I graduated in 2008. With the job market in the tank, I was unable to pay on it and defaulted on the loan with my last payment on Apr 22, 2013 when the loan was charged off by Sallie Mae. 

 

I live in California and know that because I have not paid on it the statute of limitations on the loan has since run out (4years). The loan is still on my credit report but is showing as charged off and I have been able to rebound and rebuild my credit because of these forums.

 

The main issue is that it is still showing up on my Fathers credit report and the most deceiving thing is that the loan transferred to Navient who has tripled the loan to 75k and has been reporting the loan as paid on time every month which it is not! The loan has been charged off and they continue to report and run the interest on the loan.

 

My question is how should I handle getting this removed from my fathers' account.  Should I dispute with the credit bureaus on behalf of my father and how would you all suggest I do so ?

 

If any of you have had a similar experience? Any and all advice would be appreciated. 

 

Thank you 

Message 1 of 9
8 REPLIES 8
Legendary Contributor

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

I assume that the loan is under your name only, and that he did not co-sign.

 

He can dispute any reporting of the loan to his credit report if he is not a joint account holder of co-signor.

The basis for his dispute would be that the account is not his, and any reporting as either a joint account holder or a co-signor is inaccurate.

 

No, you cannot dispute for him unless he first gives you a legal power of attorney.

Is there some substantive reason why he cannot sign a dispute?

 

As a side-note, I would not refer to the loan as having been discharged based on the creditor having taken a charge-off or the SOL having expired.  Neither of those events discharges the debt.

The debt remains fully due after a CO or expiration of SOL, and they do not discharge the debt.

Expiration of SOL only precludes the creditor from now obtaining a judgment, and taking of a charge-off is an internal accounting measure that moves the unpaid debt from the accounts receivevable (asset) column of their books over to a non-asset column.

You still owe the debt.

Message 2 of 9
Member

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

Hi Robert,

Thanks so much for the reply.

My father was listed as a co applicant on the loan.

The loan was discharged as of 2013. The loan was taken over by Navient and is reporting as paid on my fathers credit report only. It continues to report as paid on his report however we have no paid on it due to statue of limitations and the charge off.

With that I am trying to figure out if I should have my father contest the loan as it is reporting as paid and is reporting multiple accounts in a sum that is almost 4x the original loan amount.
Message 3 of 9
Established Member

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

You might want to consult with an attorney before making any contact.

Message 4 of 9
Member

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

Thank you for saying so, I was thinking so as well. Just wanted to see if anyone had had a similar experience. The fact that it is still reporting as paid and has split into multiple accounts is difficult.
Message 5 of 9
Established Contributor

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

Are you positive this was a private loan? The reason I ask is in late 2012, Sallie Mae and Navient split. Sallie Mae kept all the private loans and all the Federal loans went to Navient. If you are positive this was a private loan, then it may just be an issue with that split and things got mixed up. I know I had a mess as a result of this switch( well still do with some incorrect reporting from Sallie Mae on my EQ, but that's another story). 

 

If you are positive it was a private loan and can prove it, have you called Navient to inquire what they are seeing? It may just be a data entry error that you can clean up with a phone call( well will likely take several).

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Message 6 of 9
Member

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

@dynamicvb 

 

Thanks so much for your response. Yes I am 100% sure it was a Sallie Mae Private Student Loan. On my credit report, it shows as Sallie Mae Closed, on my fathers report it is showing up as Navient and has split into multiple accounts reporting as paid. My apprehension to calling Navient is that I don't want to reopen the loan with statute of limitations. I am thinking the best course might be to talk with an attorney and then to potentially dispute on behalf of my father with the credit bureaus. 

Message 7 of 9
Established Contributor

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

I went through the same thing... it dinged my dads report.. embarrasing. 

 

I paid more in late fees than the actual loan....

 

Can you get the loan out of default?

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Message 8 of 9
Member

Re: Discharged Student Loan from Navient / Sallie Mae Showing up on Parents Credit Report - What to

The loan is discharged and I am not trying to get it out of default, it was a private student loan and due because it is passed the SOL , I would just like it to be removed from my dads report as it has been removed from mine. I am just not sure how to proceed with removing it from his report without distrusting the sol or awakening the “Navient giant”.
Message 9 of 9
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