cancel
Showing results for 
Search instead for 
Did you mean: 

Early Exemption of Closed Defaulted Student Loan

tag
Jordan23ww
Valued Contributor

Early Exemption of Closed Defaulted Student Loan

Let's gooooooooooo!!!! In early April my defaulted Student loan, that had missed payments from 2017 to 2018, was removed from my Equifax report. It was still remaining on my Transunion report until today. Moments ago I got a notification from Wallet Hub that a derogatory account had been removed. I checked it out and saw it was the student loan.  I came on the MyFico site and it was gone on there too. My Tranunion Fico 8 score has jumped up 61 points as a result.

 

I am so excited! When I started my credit rebuild in August 2019 I worked to improve my credit scores by reducing my card balances and getting my student loan out of default status. My account was given a fresh start, when I did their program for getting the loan out of default they closed the old account and opened a new account with a clean history. So all that was left was waiting a few years for the old account and all the missed payments to be removed. The first missed payment was showing from July 2017 so I figured around July 2024 the missed payments would be removed one by one as they reached 7 years in age. I also knew early exemption was a possiblity, but I was thinking individual missed payments would be removed 1 by 1 early as they got closer to 7 years in age if that happened. Instead they removed  the entire account and all of the missed payments 3+ months early! Now only my Equifax has negative items on it, an old collection for $250 that got reported by a company twice, which I also paid in full in 2020. Unfortunately "Pay for Deletion" was not an option, but I wanted to pay my debt even though it should have never gone into collections (long story short I had a payment plan and without me missing a single payment they closed the account and sent it to collections).  I am hoping those get removed early too eventually! 

 

 

Screenshot 2024-04-12 at 3.38.51 PM.pngScreenshot 2024-04-12 at 3.39.14 PM.pngScreenshot 2024-04-12 at 3.43.05 PM.png

      


Message 1 of 13
12 REPLIES 12
Blender
Established Contributor

Re: Early Exemption of Closed Defaulted Student Loan

That's awesome, congrats!

4/2024


Message 2 of 13
JoeRockhead
Senior Contributor

Re: Early Exemption of Closed Defaulted Student Loan

That's a significant jump. Very nice, congratulations!

Message 3 of 13
keekers
Established Contributor

Re: Early Exemption of Closed Defaulted Student Loan

Very cool; congrats!



Message 4 of 13
Jordan23ww
Valued Contributor

Re: Early Exemption of Closed Defaulted Student Loan


@Blender wrote:

That's awesome, congrats!


@Blender  thank you! I appreciate it!

      


Message 5 of 13
Jordan23ww
Valued Contributor

Re: Early Exemption of Closed Defaulted Student Loan


@JoeRockhead wrote:

That's a significant jump. Very nice, congratulations!


@JoeRockhead  thank you! I was so surprised to see the jump!

      


Message 6 of 13
Jordan23ww
Valued Contributor

Re: Early Exemption of Closed Defaulted Student Loan


@keekers wrote:
Very cool; congrats!

@keekers  thank you! I appreciate it!

      


Message 7 of 13
JM761
Regular Contributor

Re: Early Exemption of Closed Defaulted Student Loan

This is amazing!!!! Congrats!! 

Do you mind if i ask how the closed/derogagtory report looked on your report before it was removed/deleted? Was it listed as Closed and then the payments listed as late? 

My situation is similar..kind of. 

My navient federeal loans were in default, sold to another lender. They show on my report as "sold to another lender' and late payments 2018, like you. 

They were sold to great lakes but never appeared on my credit report. I got my great lakes loans out of default by consolidating and doing PSLF. The consolidated loan (with mohela) was added to my credit report as paying as agreed and when they were forgiven, the account closed, in good standing. 

Unfortunately, the navient, derogatory account, remains on the account. I have another 1.5 years left before it's removed and I can't get navient to remove it. I have a letter saying they were forgiven but they said that since it was accurate in 2019 when I reported it, they can't do anything about it. 

I'll hope for an early removal, like you. Congrats again!

 

Message 8 of 13
Jordan23ww
Valued Contributor

Re: Early Exemption of Closed Defaulted Student Loan


@JM761 wrote:

This is amazing!!!! Congrats!! 

Do you mind if i ask how the closed/derogagtory report looked on your report before it was removed/deleted? Was it listed as Closed and then the payments listed as late? 

My situation is similar..kind of. 

My navient federeal loans were in default, sold to another lender. They show on my report as "sold to another lender' and late payments 2018, like you. 

They were sold to great lakes but never appeared on my credit report. I got my great lakes loans out of default by consolidating and doing PSLF. The consolidated loan (with mohela) was added to my credit report as paying as agreed and when they were forgiven, the account closed, in good standing. 

Unfortunately, the navient, derogatory account, remains on the account. I have another 1.5 years left before it's removed and I can't get navient to remove it. I have a letter saying they were forgiven but they said that since it was accurate in 2019 when I reported it, they can't do anything about it. 

I'll hope for an early removal, like you. Congrats again!

 


@JM761  My apologies to you! I am just seeing your question.  So my account was listed as closed but it wasn't listed as a charge off or collection. It just showed all the missed payments and that I had been late for 60, 90 and 120+ days. I had 9 late payments on file at the time.  

 

The student loan issuer doesn't report late payments until it reaches 60 days.  So I had 1 -60 days late, 1-90 days late and 7-120+ days late payments on my credit report. 

I think by me getting the loan account out of default status that is why it wasn't showing as a charge off or collection.  Just my guess.  It definitely was in collections before I got  my late payment balance back down to $0.  Then they closed the account and opened a brand new account with no history.

 

The new loan shows it was opened on the day of my new loan being opened instead of the date I originally first got the loan. So the new loan had a perfect payment history while the old closed loan kept showing 9 late payments.


Hopefully this is helpful! I wish you best wishes with your loan and your credit journey!

      


Message 9 of 13
keekers
Established Contributor

Re: Early Exemption of Closed Defaulted Student Loan

Very cool; congrats.



Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.