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Student loan dilemma!

BM1990
Valued Member

Student loan dilemma!

I had a private loan through my University that I was making payments on , and as of recent , it has  been transferred to the federal government for servicing. The account had some missed payments on it, but since it's been transferred, it's now on my credit report twice, under two different names. I spoke to the original servicer, and they said I no longer make payments to them, and that I will make my payments to the government entity.

 

My question to you is, should I dispute the original account now, or do I let both of them report ? Or will the original account go away on it's own?  If I can no longer make payments to the orginal servicer , it shouldn't even be on my credit report, right ? It seems like the updated account doesn't have the past negligencies from the orginal servicer, which is a good thing.  How do I go about this ? Should I just leave it alone?



Experian: 626
Equifax: 629
Transunion: 628

2 REPLIES 2
mgs2010
Regular Contributor

Re: Student loan dilemma!


@BM1990 wrote:

I had a private loan through my University that I was making payments on , and as of recent , it has  been transferred to the federal government for servicing. The account had some missed payments on it, but since it's been transferred, it's now on my credit report twice, under two different names. I spoke to the original servicer, and they said I no longer make payments to them, and that I will make my payments to the government entity.

 

My question to you is, should I dispute the original account now, or do I let both of them report ? Or will the original account go away on it's own?  If I can no longer make payments to the orginal servicer , it shouldn't even be on my credit report, right ? It seems like the updated account doesn't have the past negligencies from the orginal servicer, which is a good thing.  How do I go about this ? Should I just leave it alone?


I know this is kind of an aged post at this point but wanted to chime in - you mentioned the transfer was recent, so it's possible that within the next month or two the old account will update to reflect that it has been transferred to another lender and zero out. If that's not the case, I would definitely dispute just to reflect less debt overall. Technically, if there's no lates then I guess it doesn't hurt either way but I would recommend getting it updated regardless. 

Message 2 of 3
Mookey67
Contributor

Re: Student loan dilemma!

Hello. I'm late chiming in as well but msg2020 is correct in that the account will eventually update to show a zero balance and should show that it is transferred. The previous history on the loan will not go away. The only thing you will be able to dispute depending on how long ago it was transferred is the balance updating to zero and showing transferred. It will not go away because your report shows the history or flow of the loan

Exp - 850 TU - 846 EQ - 846
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