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How many times does defaulted student loan appear on credit report

Established Member

How many times does defaulted student loan appear on credit report

Hi all,


If a loan was in default like 10 years ago, would it show on the credit report?


And if it does show, and I still never made a single payment on it, will it re-appear on the report years later, after being removed?


I have a unique situation which involves serious illness and disability and trying to see what my options are.

Message 1 of 4
Valued Contributor

Re: How many times does defaulted student loan appear on credit report

If it is a federal loan, it WILL stay on your report and they continue to be legally able to collect on it by doing things like garnishing your wages and seizing your tax returns.  Federal loans don't go away except in cases where the student is permanently disabled, files bankruptcy, and establishes that repaying the loan is an undue hardship.  It is possible, but it's very rare for student loans to be discharged in a bankruptcy.


Do you have federal or private loans?  Are there accounts on your credit report that you suspect are connected to your loans?


Since your situation is unusual, I would look for an attorney that is knowledgable in handling student loans and disability issues.

Message 2 of 4
Established Member

Re: How many times does defaulted student loan appear on credit report

It's a federal loan I think ED. I also have a Sallie Mae loan which shows up as deferred. I never applied for deferrment.


I became disabled in while I was in school, the illness is permanent. This is like in 2001.


I'm assuming that the loan went on my report, cause I have never made a single payment on it.


But just recently, my credit got better, cause all of those credit card collections cleared up.  And now I have some secured credit cards and am rebuilding my credit.


I"ve had many letters from collection agencies, but I just ignore them.


Now a few days after my SSI hearing, I got another letter from some company which said that it has been subcontracted by ACT or ACS, etc, etc. But there isn't anything negative on my report regarding the defaulted loan, just a few unpaid medical bills.


My SSI decision should be coming next week.


They can't garninsh anything cause SSI can't be garninshed and we get public assistance for my kids they can't garnish that either, I mean we need something to live on.


The only thing they can garnish is the income I make online which is $10 a month.


But I was wondering on the credit thing, because we will be moving into a better apt so the kids can be in a better schoool district, and if that notice I got, will they put it on my credit report.


It has wording like




i read somewhere that before putting negative information on a report they need to use the wording something like


"We may report this to the credit agencies .........."


But there is nothing on the notice like that.

Message 3 of 4
Valued Contributor

Re: How many times does defaulted student loan appear on credit report

It may not be reported now, but federal loans are not subject to a statute of limitations, so it may well re-appear somewhere down the line.  I don't know if you are eligible for any refundable tax credits, but they can also seize your returns without a judgment.


These loans will not go away, and the collection efforts will probably not stop unless you either go through the process of discharging them in bankruptcy or contact the collection agency and work to rehab or consolidate the loans and get them out of default and eventually paid off.  


Even with your limited income, unless you plan to pursue discharging the loans through bankruptcy, I would consider attempting to work out a rehab plan, and then enrolling in the income-based repayment plan, which would probably zero or very close to it in your situation.  With the loans on IBR, you would have a positive payment mark each month, and after 25 years, the remainder of your balance will be forgiven.  It's a positive for your credit, it makes good on your debt, and it prevents any unexpected surprises with negative marks showing up on your credit report, or tax returns being seized.

Message 4 of 4