cancel
Showing results for 
Search instead for 
Did you mean: 

Student Loan Showing "Closed"

Gardener88
Established Member

Student Loan Showing "Closed"

I checked my FICO on experian today and noticed a +27 point jump which really excited me. I have been rebuilding my credit recently, and this made me move from "Fair" to "good" rating, a 120pt jump in 3 months so I was definitley feeling good. After looking what caused this, I noticed my student loan were reported as "Closed" but I still have a balance of a little over 18k, not delinquent at all and current. It was in an administrative forbearance while the payment plan was updated. Is this why or normal?

 

I guess my question is what happens with this account? I called a few weeks ago for an update s to when the forbearance would end, and mentioned it was reported as "closed" and they said that is a mistake on the bureaus end. I have and had all intention to keep making payments, so i'm not really looking for a way out, but what is the reasoning and obligation for this account? Is it supposed to show "closed" while in a deferment? Can they just re-open a closed account? The comment on the account does show "Student Loan - Payment Deferred"


10 REPLIES 10
FireMedic1
Super Contributor

Re: Student Loan Showing "Closed"


@Gardener88 wrote:

I checked my FICO on experian today and noticed a +27 point jump which really excited me. I have been rebuilding my credit recently, and this made me move from "Fair" to "good" rating, a 120pt jump in 3 months so I was definitley feeling good. After looking what caused this, I noticed my student loan were reported as "Closed" but I still have a balance of a little over 18k, not delinquent at all and current. It was in an administrative forbearance while the payment plan was updated. Is this why or normal?

 

I guess my question is what happens with this account? I called a few weeks ago for an update s to when the forbearance would end, and mentioned it was reported as "closed" and they said that is a mistake on the bureaus end. I have and had all intention to keep making payments, so i'm not really looking for a way out, but what is the reasoning and obligation for this account? Is it supposed to show "closed" while in a deferment? Can they just re-open a closed account? The comment on the account does show "Student Loan - Payment Deferred"


More than likely on the next update it will reflect being open again. I'll ping @Sabii our in house SL expert on this matter for better results. Good Luck!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 11
Sabii
Valued Contributor

Re: Student Loan Showing "Closed"

Hello, 

Just to be clear, you're absolutely sure your account is in good status? They make a lot of errors and you have to be vigilant because they will not be held accountable unfortunately.

 

I would double-chrck the account with the servicer and with the National Student Loan Database (NSLDS) website. Make sure the status is good. If they'd okay you should be in the clear.

 

One small thing. You mentioned an administrative forbearance and then later a deferment. Those are different. An administrative forbearance is typically for when your turn in paperwork, like for a payment plan, and it's processing. It's usually automatic and a month or so. Can you elaborate what it was for?

 

If you had that large of a point gain, also wanted to double check if got had any lates on the account. When it comes back those will prob reappear. Sorry about that. 😔

Thank you.




Message 3 of 11
Gardener88
Established Member

Re: Student Loan Showing "Closed"

Hi Sabii, 

 

Thanks for your response. I am positive it is in good standing, it is a reconsolidated loan that I have been overpaying to reduce it as quickly

as possible. I had an account with them years ago that was not in good standing, which is still correctly showing as a closed account. It was in administrative forbearance as I was trying to update my repayment option, but the credit report is showing closed for deferment for some reason, I did not ask for forbearance. I called and verified this with Fedloan but they blamed the bureau for falsely reporting closed and confirmed my account was in good status. I was still making payments during this time actually since interest was still racking up. 

 

I guess I can wait and see if it opens back up, I just wasn't sure of what caused this or my liability towards it. I'm not trying to get out of it ha. I haven't checked with the NSLDS yet but I will do that. 


Screen Shot 2020-03-24 at 1.15.16 PM.png

 


Message 4 of 11
Sabii
Valued Contributor

Re: Student Loan Showing "Closed"

Had the status changed yet? 

We might all be deferred now. FedLoan tends to lie imo, so if you can't fix it in their end you could start the dispute prices Student loan ombudsman then CFPB complaint. I've had great success with the latter.




Message 5 of 11
recoveringfrombk7
Established Contributor

Re: Student Loan Showing "Closed"


@Sabii wrote:

Had the status changed yet? 

We might all be deferred now. FedLoan tends to lie imo, so if you can't fix it in their end you could start the dispute prices Student loan ombudsman then CFPB complaint. I've had great success with the latter.


@Sabii you are correct, all federal loans are in automatic forbearance at 0% interest.  I received an email that I would need to opt out of it.  I'm not choosing to do so because I qualify for PSLF and the skipped payments count as part of the CARES act.  You can still pay and remain in the forbearance or you can contact them to formally opt out.  If it were me I'd just make the payments and not have them fudge with my account status with everything that's going on.  Things could get wonky.  Just my 0.02.











Desired BK recovery line up complete 7/12/2021. Planning to garden until 8/2023 and potentially try for AMEX.
Message 6 of 11
Gardener88
Established Member

Re: Student Loan Showing "Closed"

Status still has not changed but I am getting the forbearance notice now when I log in. It was like this before the whole covid thing, so i'm sure its unrelated. But yes, i'm still making payments and not requesting any other changes at this time. FedLoan says its not closed and its still open (aside from the forbearance), and bureaus are saying its closed so i'm not really sure. Once things clear up I'll address it again as it's not affecting anything negatively, but theres alot of moving parts that make it convoluted right now. I'll update if things change. Thanks for the insights!


Message 7 of 11
JustKeepSwmng
Valued Member

Re: Student Loan Showing "Closed"

I'm in grad school and have I believe 14 student loan accounts and they're all reported as "paid as agreed" and "closed", Experian says "excellent payment history". 

I have not had a break in school in 7 years and have never paid on any of the accounts so when I pulled all the reports I figured this was the way they're being reported in forebearance now as I hadn't pulled a report in years. 

Has anyone confirmed this is an error?

The Journey Begins...
4/2020 EX: 591 EQ: 589 TU: 626
05/2020 EQ: 619 EX: 620 TU: 635
11/2020 EX: 691 EQ: 664 TU: 680
Message 8 of 11
Chandler455
Established Contributor

Re: Student Loan Showing "Closed"

If they do this they better not make people's scores tank after paying off my car these will be my only installment loans, better not get the installment penalty because they say closed, because that's bs

Personal
NFCU platinum 18k | Best Buy visa 10k | NFCU Flagship 8k | discover it 4.7k | kohls 3k | target 800

Business
Hilton Amex 15k | Costco visa 10k | Amex Amazon prime 9k

Ficos TU 831 EQ 805 EX 814
Message 9 of 11
JustKeepSwmng
Valued Member

Re: Student Loan Showing "Closed"


@JustKeepSwmng wrote:

I'm in grad school and have I believe 14 student loan accounts and they're all reported as "paid as agreed" and "closed", Experian says "excellent payment history". 

I have not had a break in school in 7 years and have never paid on any of the accounts so when I pulled all the reports I figured this was the way they're being reported in forebearance now as I hadn't pulled a report in years. 

Has anyone confirmed this is an error?


Sorry not forebearance, but deferred. In the comments section on all they say indeed deferred, but the short view says paid, closed. 

The Journey Begins...
4/2020 EX: 591 EQ: 589 TU: 626
05/2020 EQ: 619 EX: 620 TU: 635
11/2020 EX: 691 EQ: 664 TU: 680
Message 10 of 11
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.