Let me start this by saying that a good chunk of my credit report is a hot mess of student loan issues.
I've had several different federal and private student loans over time. I'm currently paying on 3 total loans--
-one with the Dept. of Ed which consists of all of my federal loans, around 13,500
-one with Iowa Student Loan (Aspire), for a small $3000 private loan
-one with Firstmark (transferred from Nelnet) for $7500 private loan.
However, I or my parents have paid a few loans in full already. Some of these show accurately and some appear not to. Combine with some of my loan consolidations, some things are not reporting accurately.
1. My Dept. of Ed loan consists of 5 smaller loans, the original creditor of 2 of those loans is reporting the original loans as "Paid Collection" with a $0 balance. The original credit of the remaining 3 loans is reporting as "Refiananced" with a $0 balance. Am I splitting hairs here, or does this matter?
2. My Firstmark loans were transferred from Nelnet, who was an original servicer for several of my prior loans, including some that were paid off by my parents. However, on my CR, Nelnet is still reporting a collection account with a balance of $7536, and a last payment date of 04/2011. This account shows the exact same loan origination/opening date as my Firstmark account, and the balance shown on the two accounts is the same, as is the original loan amount.
Would this be a situation in which I'd want to DV letter? Or should I just call Nelnet and inquire? When I log into my online account there is nothing there buy past payment history--nothing current.
3. I have two smaller Nelnet loans that show as "claim filed with the government" and tshow a $0 Balance. The status of these is "120 Days Past Due". I'm not even sure what this means -- did I default? Wouldn't it just say that? Is there anything I can/should be doing here? It is showing last reported date of 07/2011, but on my Nelnet account it shows that it was PIF by the claim on 06/20/2011.
I wasn't very diligent or educated on my loans when the payments initially came to fruition, and then I had an unexpected surgery with no insurane, so when I was younger I got behind on everything and then had to work to catch up and repair my relationships.
Any and all input is appreciated.
1. What actually happened to these loans? Were they in default? If so, the "collections" status may be correct. When federal student loans default they are sent to DoE-contracted collection agencies, and sometimes the DoE directly to collect.
2. When you say transferred, what actually happened here? Did you take out another loan to pay off the amount from Nelnet that was in collections? If so, they should be reporting a $0 balance and that the collection was paid.
3. Yes, this is how defaulted loans report. Default is 120+ days past due by definition, and "claim filed with government" is what happens when a borrower defaults - the government guarantees the loans. I would check in the National Student Loan Data System to see if you have any federal loans other than those you are currently paying outstanding. If you do, you should contact the agency holding them and ask about rehab or consolidation to get them out of default.