Private Student Loan Question

[Anonymous]

I have a private student loan with Sallie Mae that is in default but I have been making my payments every month for almost a year. According to www.manageyourloans.com my payments are $36. I 've been making that payment plus more. My credit report is listing the account as closed with all 3 bureaus. The Sallie Mae website shows all my payments I've made. DOFD is 12/01 DOLA 6/08.How should I proceed?

[Anonymous]

Bump.......

[Anonymous]

Okay, wait a sec ... you DID pay them for a year and THEN you defaulted? Or they WERE defaulted and NOW you've paid them for a year?

If you've been paying on them for almost a year, they shouldn't be in default anymore.

[LynnInMN]

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Wonderin wrote:
Okay, wait a sec ... you DID pay them for a year and THEN you defaulted? Or they WERE defaulted and NOW you've paid them for a year?

If you've been paying on them for almost a year, they shouldn't be in default anymore.

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He  said a SM private loan.    A defaulted private  loan  will  never become current  and  cannot be rehabbed.

To the   op...the  payment  site you are looking at  is for loans  that  are  not in default and  are current.  Making  payments  on  a default  will  not  prevent  them from sueing  you.

[Anonymous]

Should they change the status? They are only reporting it as charged off. 

[Anonymous]

Does anyone have any suggestions?? I' m working on DFD's and GW I need to know which way I should go on this one. Or just I just make them report accurate info.

This is what is showing on truecredit as of today.

SALLIE MAE |Dispute

Account No.:                                                                                                                                                 9****                            9****                           9**** 

 Condition:                                                                                                                                                  Derogatory                  Derogatory                  Derogatory

 Balance:                                                                                                                                                     $5425                          $5404                           $5404

 Type:                                                                                                                                                           Educational                 Educational                  Educational

 Pay Status:                                                                                                                                               Collection/Chargeoff Collection/Chargeoff Collection/Chargeoff

Two Year Payment History:

Showing from Aug '06 to Jul '08 CO on both EX and EQ TU shows nothing

When I diputed it just came back verified.

Like I posted earlier I've been making payments since Aug '07. Please help!

[Anonymous]

Is anyone out there???  Does anyone know?? Or does anyone care?

[LynnInMN]

I already answered your question.  You are in default.  According to the promissory note you signed, you agreed to pay the balance in full in case of default. Your status is collection/chargeoff which is absolutely correct and will stay that way until the loan is paid in full.  There is no rehab for private loans and there is no going back.

Have you actually talked to anyone in collections who is handling this loan?  Most private loans carry higher interest rates than federal loans and by my calculations, you are probably not even covering the interest each month. 

Keep in mind that even if you are paying on a default, they will eventually take a judgement out on you. This is standard with private loans in default.

[Anonymous]

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@LynnInMN wrote:

I already answered your question. You are in default. According to the promissory note you signed, you agreed to pay the balance in full in case of default. Your status is collection/chargeoff which is absolutely correct and will stay that way until the loan is paid in full. There is no rehab for private loans and there is no going back.

Have you actually talked to anyone in collections who is handling this loan? Most private loans carry higher interest rates than federal loans and by my calculations, you are probably not even covering the interest each month.

Keep in mind that even if you are paying on a default, they will eventually take a judgement out on you. This is standard with private loans in default.

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But wouldn't the balance, as she's been making payments on it since Aug '07, at least be reported as going down?

Or am I deciphering her CR entry incorrectly?

Or is that what you meant by "not even covering the interest?"

Not trying to argue, here, just want to understand!!

[Anonymous]

I think I made a mistake there ... since I was replying to you, Lynn, I couldn't see the OP's entry and thought that the CRAs were reporting the same figure for HIGH balance as well as CURRENT balance. Taking another peek at it, I see that there was no HIGH balance being reported.

Though I'd like the original question to still stand. Should her CRs report a dwindling balance as she pays (assuming she IS covering the interest)? Or are PSLs different?? Do the balances only update when the loan is paid off?

Really curious as how something like this would report!