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Rehabilitated, defaulted student loans randomly falling off credit report?

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Rehabilitated, defaulted student loans randomly falling off credit report?

Hello everyone,

 

As a little background, I have 3 federal student loans, 1 opened march 2012 and 2 opened Feb 2013. I stopped paying them June 2014 and the eventually went into default. Now, I am not sure when exactly they went into default status, but per CK, the accounts were closed May 2016. Fast foward to Feb 2017 just as they were about to garnish my wages, I started the rehabiliation process, which was completeted around November 2017, I made the last two payments at the same time or something like that, I cant remember exactly. I've been paying my new loan servicer, nelnet, with no issue. 

 

Now as in terms with the credit reporting on the old, defaulted loans which were serviced by Fedloan services, I tried disputing them a month or two after the rehabiltaiton process was completed, but the disputes were resolved and the accounts stayed on all 3 reporting agencies so I just gave on that and decided to move foward. And while all those reds were still staring me in my face, I kind of "forgot" about the closed accounts. Well today I get an email from experian saying my credit score jumped 29 points to a 734 and I at first I had no idea why. After some bewildered searching, I noticed that, in fact, those 3 Fedloan services accounts where gone. And just to make sure, I checked my previous report with experian and they were there. CK still lists the accounts on my TU and Equifax.

 

So for my question, while I know that negative information goes away after 7 years, I am not sure when the clock starts. Whether it's the first date i stopped paying, when the loans went into default, or when the accounts were reported closed, it hasnt been 7 years yet. Was it a fluke? Dumb luck? If anyone can give me a little more information, I would greatly appreciate it. 

 

Thank You

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Established Contributor

Re: Rehabilitated, defaulted student loans randomly falling off credit report?

Congrats on the rehab! They'll probably stay off. There's no guarantee. The only guarantee/ right of rehabbing is that the default will be removed. I highly suggest you check your real credit reports. There is a $1 trial (sign up, save, and downgrade to free - it's awesome) on Creditchecktotal. Or you can use the free service on freecreditscore.com for Experian. Only time will tell but you're in the right path. Keep up everything else and your score will recover quicker than you'd probably think.
Federal Student loans are different and the 7 year rule does not always apply as long as you owe the debt. You got it removed because you challenged it and the servicer probably didn't submit information to confirm the tradelines. They are often unpredictable. Doesn't mean they will or will not come back, but for now it works for you. Not a fluke. 😉



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