SoI've been in the process of cleanup up my credit the past few years and am happy to say that just taking it slow and making positive changes has worked to an extent. I went from starting scores around 515 to 640s today. I have pretty much resigned to the fact that there is nothing I can do about the 7 student loans I have which defaulted way back in 2014/2015. They have have been rehabbed so they no longer report the default but 5 of them still show lates (the other 2 were removed interestingly enough). I called Nelnet to see if they could help out via a goodwill adjustment since this was 4 years ago with no success. I know the law says theres pretty much I can do on that front but I figured to give it a shot anyway. So my questions are:
If I just sit on them (they fall off March 2022?) how much impact will they carry on my score and history?
I have been declined in the past for credt for "Number of derogatory accounts". After next month, I will have successfully removed all of my collections (they all agreed to PFD), and will have taken care of the only other negative on my account.
I am concerned because this will still leave 5 accounts showing as negative (because they were all counted as small $2000 loans) for the next 3 years.
The other concern is that my understanding is that the loans will fall off at 7 years from original report of late. The issue with these loans is they all start reporting late at 90-120 days instead of 30 which means they will fall off that much later. Is there anything I can do about this?
How will having five four year old late student loans on my account impact my overall score (will it stop me from reaching 700?)
What can I do about them reporting original deliquency at 90-120 days instead of 30 (so they will fall off a little bit sooner)?
my fico scores are just under 700 right now, despite 5 student loan accounts reporting 120+ days late around 14 months ago. Hope this helps!
The Higher Education Act includes subsections that require reporting of delinquencies on certain types of federal student loans, and also exempts them from the normal exclusion provisions of the FCRA until the loan is repaid.
That means that the creditor/servicer cannot grant discretionary good-will deletions, and that they will not become excluded under the normal 7 year exclusion provisions of the FCRA until the loan has been repaid.
See sections 430A and 463 of the Higher Education Act for such provisions.........
The requirement is that it be paid.
Consolidation or otherwise transferring the debt to another creditor/servicer does not pay the debt.
@RobertEG. Thought I would revive this thread as something you mentioned in it stood out to me. So you are saying that discretionary good-will deletions would only be applicable to loans which where paid off?
I am currently contemplating a strategy to try and get several lates removed from (2) out the 3 CB's. My 7 year mark of the first student loan lates begins in May so would like to get an EE 😀