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Never late & paid off federal student loans still on my report 7.5 years after payoff?

1LostArk
Valued Member

Never late & paid off federal student loans still on my report 7.5 years after payoff?

My federal student loans are my oldest account(s) and I assumed they would drop off 7 years after they were closed (never late, paid as agreed). Is this normal? I won't complain if they stay there as long as they want, being my oldest accounts and all. I'm just trying to be strategic about making sure I don't need new credit if and when these accounts drop off, since that will shave 4 years off my credit history.


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chiefone4u
Established Contributor

Re: Never late & paid off federal student loans still on my report 7.5 years after payoff?


@1LostArk wrote:

My federal student loans are my oldest account(s) and I assumed they would drop off 7 years after they were closed (never late, paid as agreed). Is this normal? I won't complain if they stay there as long as they want, being my oldest accounts and all. I'm just trying to be strategic about making sure I don't need new credit if and when these accounts drop off, since that will shave 4 years off my credit history.


Accounts closed in good standing typically remain on your credit report for ten (10) years.

 

While the age of the account is currently helping your AAoA, at the ten year mark you could take a hit depending on the age of your other Accounts. 

 

This closed loan does not help with credit mix.

 

Opening more Accounts for the sake of opening accounts,  isn't always the best strategy. If you currently have a sufficient number of accounts there isn't much reasoning to open other's. 

 As long as you don't go on major app sprees, your AAoA shouldn't take much of a hit if you should need to open a new account in the future (Opening multiple new accounts will negatively effect AAoA with a thin file).

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Message 2 of 4
calyx
Super Contributor

Re: Never late & paid off federal student loans still on my report 7.5 years after payoff?

Positive accounts (even student loans) generally stay on your reports for 10years.  Could be more, could be less.
You might take a hit when they fall off, and making sure that you've got a thick enough file to take the hit could be beneficial to you - but I echo the above with "don't go crazy" and watch the math.

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Message 3 of 4
jade200
New Member

Re: Never late & paid off federal student loans still on my report 7.5 years after payoff?

Yup. This just happened to me. I took a huge hit- 24 points. 

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