Student Loan- Default fall off credit report

[NLP23]

Hey everyone 

I'm looking at my TU credit report at my derogatory student loans. It is listed as student loan, date updated 05/2017, date closed 05/2017, and estimated month and year this item will be removed 05/2023. It looks like the date the first default payment reported was 08/2016. So shouldn't it be removed 08/2022? I consolidated the student loans in 03/2018.

I'm trying to figure out when to do my refinance. If this will fall off my report this summer then I can wait. If not, then I'll just go ahead and start the process.

Thanks in advance for answers!

[lns1976]

If they get into a "rehabilitation" plan on the IBR (income based program) it has the potential to benefit their credit.

When I rehabbed mine it dropped all derogs and relisted the loans as "paid as agreed".

As people have already mentioned, if it's a federal loan it could haunt them the rest of their lives if they don't take action.

[lns1976]

If these are Federal Student Loans through the DOE they will never go away unless you get them out of default and current on payments.

They can haunt you the rest of your life.  The 7 years doesn't really apply to Government Student Loans.

[NLP23]

I did the reconsolidate plan on IBR. I have been in the IBR for four years now. I did not know the rehab program was even an option at the time. What are the chances of the credit companies dropping my derogatory accounts a year early? HAHA. No such luck, I'm sure. One more year and all the bad stuff is off. 

[lns1976]

If you are on the IBR with DOE Student Loans they will continue to update until Paid or Forgiven, 7 years doesn't matter.

You said you're on the IBR, which gives forgiveness of the remainder after 20 years.

Being on the IBR though they should be reporting as "Paid as Agreed" with only older mistakes showing.

[NLP23]

They definitely are not showing "paid as agreed".... now my consolidation has reported very well bc everything has been positive. I'm also in the PSLF program. So the future is looking bright... just trying to get these 30 accounts [which were all consolidated] off my report bc it really drags my score down. 

[lns1976]

If you consolidated them to a new loan instead of rehabbing you're going to have to wait it out I suspect.

And 2016 + 7 is 2023.  2017  + 7 would be 2024 so it sounds like they are reporting correctly.