I have been having a lot of difficulty finding out real information about how long student loan default collection accounts can report. And, if a current change in their reporting is illegal.
I had a parent PLUS loan for aprox. $3,700 in 2001. In mid 2006, it first became delinquent. Original creditor (or new administrator/guarantor? of loan), ACS, reported a DofFD of 2006, scheduled for removal Sept. 2013. In Aug. 2008, the loan defaulted. At some point around 2010, ECMC came on, apparently as collection agency (. The reported a DofFD and DofLA of mid-2007, with a removal date of June 2014. They reported that info in 2010, around the same time they intercepted my tax return to pay the collection. They reported "paid, previously in collection."
In Dec. 2013, I requested a GW early removal of this account, reporting as a paid collection, to be removed in less than 6 months. Their first letter said they weren't reporting anything & told me to send a copy of the report if I think otherwise. So, I sent a second letter, clarifying the item reported, with a copy of the report. Each time, I expressly said I was NOT disputing, but asking for a GW early removal. After my second letter, they responded saying it was a parent PLUS loan and would be removed at the end of 2015 (while CRA reports say June 2014). I wrote back once more to say that my CR says it is scheduled to fall off in two months and I would simply reiterate my request they consider removing a few months early (due to circumstances around the default and my current application for a mortgage). They sent back a nasty letter warning me of frivilous disputes (though I clearly stated no dispute) & some other things.
At that point, it got bad. They rereported to CRA, a new DofFD as 7/2008 (a year later than they'd been previously reporting, and two years later than original lender reported). They changed DofLA to the same 7/2008 (again, a year later than previously reported, BUT earlier than their last CRA report in 2010 -- so what changed between 2010 and today?). With all CRAs, they stated I disputed the information, and on one report, they also changed the record to show a 90-day past due (though it is a paid collection). Earlier reports by THEM, clearly stated the fall off date was June 2014, until they changed everything the VERY MONTH it was supposed to fall off!
No one has clarified for me how long PAID student loan default collections can report. And, regardless of whether the loan can report based on a default date or something else, how is it legal for them to keep changing the DofFD? I can't even understand the motivation. It isn't like they are trying to strong arm me to pay. It's paid! Everyone says, GW requests don't hurt. Well, this one sure bit me in the butt. I want to make a report to CFPB, but I need to know what legal standards apply to these folks! Help, please!
Starting Score: TU 490 on 11/2012
Defaulted loans paid in full can remain as negative accounts on your credit report for 7 years from the date you paid them off. It's part of the reason it's usually better to just do rehabilitation and get back into repayment.
"Paid, previously in collection" or something similar is the way it should be reported.
You might want to try sending letters asking ECMC (or whoever the collection entity was) to remove some of the negative payment history instead of asking them to delete the account from credit reports altogether. Also, make sure to check if ACS is still showing up on your credit reports. If so, they should also have the notation showing that it's paid if they haven't already. If they haven't, you might have to send them proof that you paid in full to ECMC.
Hope it helps. I know it sucks. Sorry. 
Thanks, scvbd99. ACS is long since off. They took off on time. So, not worried about that. I wished I'd know about rehab, but then again, I didn't know about the default (due to a move & misunderstanding when I thought I had deferral in place) until the tax intercept occurred. Arrggh!!! Lessons learned, for sure.
As for where things stand now, it makes me angry that student loans have a whole different set of rules in terms of the amount of time they can stay on. Even with that, however, I don't see how it is legal to CHANGE the dates for key activities (DofFD) AFTER the fact. If they go from date of default or date of payment, so be it, but that doesn't mean my DofFD changed. So ... smells 100% wrong to me what they have done (also 90 day past due newly reporting on a paid collection?) by the fact they are changing their reporting now. However, not sure what is the best case to make in terms of where they have crossed the lines. From everything I've read, it sounds like there is a lot of murkiness in the law and the case law, especially when a company is acting as a third party collector of student loan debt, versus a gaurantor.
And, now I want to scream from the rooftops that GWs CAN hurt. If I hadn't said a thing, this wouldn't be on my report now. That alone seems wrong. :-/
Thanks, Sean23. I definitely have documentation. I've prepared a complaint to CFPB and will submit it tomorrow!