cancel
Showing results for 
Search instead for 
Did you mean: 

Student Loan Status - Paid vs Transferred

Highlighted
Regular Contributor

Student Loan Status - Paid vs Transferred

I am having a hard time understanding all the movement on my student loans over the years. Hoping someone can help me understand if my loan is considered paid so my derogs eventually drop off or transferred which mean my derogs stay until atleast 2028 Smiley Sad

 

Loans originated with Wells Fargo as 3 loans, went to ACS/Navient (3 derogs of 60/90/120) as 1 loan, went to Navient as 3 loans and then eventually to US Dept of Ed as a consolidation loan. 

 

The Wells Fargo shows as transferred, ACS/Navient as transferred, Navient as PAID and finally US Dept of ED as paying.

 

Does that mean my derogs with ACS/Navient will eventually fall off since the lender who bought them (Navient) shows as paid? Am I getting excited that I do not have to wait until 2028 for my account to be paid in full and then start the fall off clock?

 

Am I over thinking that these derogs from 2015 are seriously hurting my score? How much of an impact are these derogs having?

 

I have hunted this forum and do not see success stories with removing derogs from ACS/Navient so I'm really hoping someone can help me understand. 



Message 1 of 6
5 REPLIES 5
Highlighted
Frequent Contributor

Re: Student Loan Status - Paid vs Transferred

It's my understanding that the lates fall off like normal (7 years from the date of the late). I'm hoping this is correct because I'm in similar circumstances with ~26 different federal students loans having been transferred from one servicer to another, with most loans having varying degrees of late payment history.



EX 8: Nov 2020 - 660 | EQ 8: Nov 2020 - 655 | TU 8: Nov 2020 - 654
TCL: $6,850 | AAoA: 8.7 yrs | Util: <2%
Cleaning up the last of my charge-offs and collections!
Message 2 of 6
Highlighted
Regular Contributor

Re: Student Loan Status - Paid vs Transferred


@beutiful5678 wrote:

It's my understanding that the lates fall off like normal (7 years from the date of the late). I'm hoping this is correct because I'm in similar circumstances with ~26 different federal students loans having been transferred from one servicer to another, with most loans having varying degrees of late payment history.


I have read that student loans do not fall off until paid. The first 2 moves to the other lenders actually say transferred, while the last status states paid which is why I’m confused. Hoping because the last lender has a paid status & not a transferred status prior to the consolidation that my fall off clock starts ticking. My consolidation loan is not scheduled to be paid in fill until 2028, so I’m hoping these 3 derogs don’t have to have around that long Smiley Frustrated



Message 3 of 6
Highlighted
Frequent Contributor

Re: Student Loan Status - Paid vs Transferred


@DaQueeen131 wrote:

@beutiful5678 wrote:

It's my understanding that the lates fall off like normal (7 years from the date of the late). I'm hoping this is correct because I'm in similar circumstances with ~26 different federal students loans having been transferred from one servicer to another, with most loans having varying degrees of late payment history.


I have read that student loans do not fall off until paid. The first 2 moves to the other lenders actually say transferred, while the last status states paid which is why I’m confused. Hoping because the last lender has a paid status & not a transferred status prior to the consolidation that my fall off clock starts ticking. My consolidation loan is not scheduled to be paid in fill until 2028, so I’m hoping these 3 derogs don’t have to have around that long Smiley Frustrated


I believe this is correct. However, the lates fall off at 7 years. This is similar to other normal consumer accounts where the accounts stay on for 10 years (unless closed as a derogatory account) but the lates in the payment history fall off earlier at 7 years. Basically, the date the lates fall off is different than the date the account falls off.

 

I'm not sure when transferred student loans come off and I've been wondering this myself. Is a transferred federal student loan treated like a paid loan that falls off at 10 years or do all accounts remain until the transferred account is completely paid off? After my Stafford lates fall off I'll have an almost clean report that is super thick and long - it should make acquiring accounts during those years much easier and I'm curious if I'll continue to benefit from this until my consolidated Stafford loan is paid off.



EX 8: Nov 2020 - 660 | EQ 8: Nov 2020 - 655 | TU 8: Nov 2020 - 654
TCL: $6,850 | AAoA: 8.7 yrs | Util: <2%
Cleaning up the last of my charge-offs and collections!
Message 4 of 6
Highlighted
Regular Contributor

Re: Student Loan Status - Paid vs Transferred


@beutiful5678 wrote:

@DaQueeen131 wrote:

@beutiful5678 wrote:

It's my understanding that the lates fall off like normal (7 years from the date of the late). I'm hoping this is correct because I'm in similar circumstances with ~26 different federal students loans having been transferred from one servicer to another, with most loans having varying degrees of late payment history.


I have read that student loans do not fall off until paid. The first 2 moves to the other lenders actually say transferred, while the last status states paid which is why I’m confused. Hoping because the last lender has a paid status & not a transferred status prior to the consolidation that my fall off clock starts ticking. My consolidation loan is not scheduled to be paid in fill until 2028, so I’m hoping these 3 derogs don’t have to have around that long Smiley Frustrated


I believe this is correct. However, the lates fall off at 7 years. This is similar to other normal consumer accounts where the accounts stay on for 10 years (unless closed as a derogatory account) but the lates in the payment history fall off earlier at 7 years. Basically, the date the lates fall off is different than the date the account falls off.

 

I'm not sure when transferred student loans come off and I've been wondering this myself. Is a transferred federal student loan treated like a paid loan that falls off at 10 years or do all accounts remain until the transferred account is completely paid off? After my Stafford lates fall off I'll have an almost clean report that is super thick and long - it should make acquiring accounts during those years much easier and I'm curious if I'll continue to benefit from this until my consolidated Stafford loan is paid off.


Awesome to hear that lates fall off after 7 years!!! The account can stay as long as it wants so long as the baddies disappear! Only 3 years into the lates reporting, but good to know I only have 4 years left versus 10. Thanks for the info!



Message 5 of 6
Highlighted
Valued Contributor

Re: Student Loan Status - Paid vs Transferred

When my account was first transferred to FLS I had 2 for each on my credit report. However, CreditKarma had an option to dispute based on like closed account or duplicate. I did that and before I knew it they had to take them off because they could not veryify it or something. Now I only have the FLS accounts. I didn't have to wait the 7 years, all the derogs are just gone. I bet this works especially well with loan servicers that have gone out of business. Good luck! :-)




Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.