When can I expect lates from defaulted SL to fall of my report?

[Anonymous]

I defaulted and rehabbed 7 student loans, which left me with a total of 114 late payments from defaulting according to FICO. The guarantor took over the loans on 01/09 so from what I understand I will be completely clean in 7 years from that date. However, since some of those lates happened as early as 2005, should I expect those lates to start dropping in 2012 and bring down the count on my 114 lates, then the rest of the lates to follow month-by-month as they each hit their 7-year anniversary? Or am I stuck with the entire negative tradeline as is until 2016? I've attached a pic to make things easier. Thanks!

[MarineVietVet]

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

It looks like they should start dropping off beginning in 1/2012. 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

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[Anonymous]

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@MarineVietVet wrote:

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

It looks like they should start dropping off beginning in 1/2012. 

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Thanks for the reply! I keep reading that the waiting period for falloff is from the date the account was closed by the OL which in my case is 1/09. And because they are student loans the HEA overrides certain portions of the FCRA. So for me to expect lates to drop earlier than that seems incorrect because if that was the case, I'd be completely clean on 01/2014. However, if indeed I am stuck with this I am going to have lates on my report that are over 7 years old which also seems strange. Its too bad no one has gone through a similar experience and could shed some light.

[MarineVietVet]

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@Anonymous wrote:

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Thanks for the reply! I keep reading that the waiting period for falloff is from the date the account was closed by the OL which in my case is 1/09. And because they are student loans the HEA overrides certain portions of the FCRA. So for me to expect lates to drop earlier than that seems incorrect because if that was the case, I'd be completely clean on 01/2014. However, if indeed I am stuck with this I am going to have lates on my report that are over 7 years old which also seems strange. Its too bad no one has gone through a similar experience and could shed some light.

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May I ask where you read this? I'm not saying it's wrong but I'd like to see it myself.

I have seen no exception in the CRTP that treats late payments on student loans any differently but I've been wrong many times before and could be wrong about this.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Anonymous]

LynnInMN wrote this on another forum

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@LynnInMN wrote:
This question comes up almost daily and we need a sticky.   

If you are late on your student loan, or you default, you cannot expect goodwill from your lenders as they are required (by law...see below) to report factually and accurately.  Student loans are a complely different animal to credit card and other consumer debt so don't expect the same rules to apply.  

If you default or your loan is sold expect those lates to remain for 7 years.  If you consolidate, the lender will not remove the lates.  If you rehab, the original lender who default you is under no obligation to delete or update your tradelines when you complete the rehab program.   


http://www.ed.gov/policy/highered/leg/hea98/HR6.pdf


QUOTE
Notwithstanding paragraphs (4) and (6) (FOOTNOTE 1) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower's defaulted account on a loan guaranteed under this part until -


(1) 7 years from the date on which the Secretary or the agency

paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency,

eligible lender, or subsequent holder first reported the account

to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after

defaulting on a loan and subsequently goes into default on such

loan, 7 years from the date the loan entered default such

subsequent time.

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[MarineVietVet]

From reading old posts I've learned that late payments on student loans will remain for 7 years from the default date. Do you happen to know that date?

I never found the source of this quote:

Notwithstanding paragraphs (4) and (6) (FOOTNOTE 1) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower's defaulted account on a loan guaranteed under this part until -

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan

entered default such subsequent time.

Do you think any of these three situations applies to you?

I am definitely not an expert when it comes to student loans but I'll look around some more.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score

[Anonymous]

I'm not going to lie, the law script is always confusing for me. I guess my default date is when the Guranator took over the loans from the OL right? Then that's 01/09. Right now my FICO tells me I have 114 late payments so what I want to know is if I can expect that number to decrease before 2016 since some of the lates came in 2005 which was before I even defaulted. Those lates will be like 11 years old in 2016!

[BungalowMo]

Greetings Jay......  Looks like you're joined at the hip with our favorite gal.....Sallie. 

I know that the screenshot above doesn't cover the entire loan history, but this seems to be the 7 loan/rehab loan history, right?  Or no?

I have a few q?'s.....

1... are the original 7 loans still posting on your reports?

2....is it posting on all 3? (I'm going to guess that yours looks like mine & you have a bunch of variations of these loans)  Do all those individual entries have all the lates posting, as well as the rehabbed mix of the loans?

    What I am trying to say up there is this....even if all 7 loans had lates in (for instance) jan, feb, mar, apr, may, etc 2005, they can individually all post that....OR post in the rehabbed mix history, but NOT in both.  In actuality, your loans should post separately up to the rehab point, then the rehab history should BEGIN when the rehab took effect.

Otherwise, you're taking double hits on every late you had.  Having that many anyway is, no doubt, killing your score, but that doesn't mean they can hit you twice.

Now...on to the drop off dates, I'm going to check some of my older reports when I get home, but I believe that these do drop off individually, 7 yrs from the date of occurance. (I'm pretty sure I had some earlier lates on my sallie loan that already fell off)  Right now I have 1 90 day late posted in Sep 03, so theoretically, the 90 should become a 60 in July 2011, then in Aug, it should become a 30.

I'll check back here later....but check your PM's too.  Something I wanted to mention there as well.

Mo

[Anonymous]

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@BungalowMo wrote:

Greetings Jay......  Looks like you're joined at the hip with our favorite gal.....Sallie. 

I know that the screenshot above doesn't cover the entire loan history, but this seems to be the 7 loan/rehab loan history, right?  Or no?

I have a few q?'s.....

1... are the original 7 loans still posting on your reports?

2....is it posting on all 3? (I'm going to guess that yours looks like mine & you have a bunch of variations of these loans)  Do all those individual entries have all the lates posting, as well as the rehabbed mix of the loans?

    What I am trying to say up there is this....even if all 7 loans had lates in (for instance) jan, feb, mar, apr, may, etc 2005, they can individually all post that....OR post in the rehabbed mix history, but NOT in both.  In actuality, your loans should post separately up to the rehab point, then the rehab history should BEGIN when the rehab took effect.

Otherwise, you're taking double hits on every late you had.  Having that many anyway is, no doubt, killing your score, but that doesn't mean they can hit you twice.

Now...on to the drop off dates, I'm going to check some of my older reports when I get home, but I believe that these do drop off individually, 7 yrs from the date of occurance. (I'm pretty sure I had some earlier lates on my sallie loan that already fell off)  Right now I have 1 90 day late posted in Sep 03, so theoretically, the 90 should become a 60 in July 2011, then in Aug, it should become a 30.

I'll check back here later....but check your PM's too.  Something I wanted to mention there as well.

Mo

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Thanks for the reply Mo, yes I have 7 closed defaulted Sallie Mae loans across all three, On EX/EQ it is listed as 15 lates per loan, so it multiplies out to 105 total late payments. For some reason TU has a few other lates from 2005 listed as which is what this screen shot comes from (114 lates on TU). Does that sound like I am taking double hits or accurate? What's helping my scores is the new lender positives post-rehab and three credit card accounts I have aquired. My TU isn't so bad, but my EQ stinks.

Also, for some reason the Sallie Mae accounts are now listed as Consumer Finance Accounts only on EQ which hurt me as well and I don't know how that happened because when I first checked my FICO they weren't listed as such. I don't even know how to fix that so they  take the CFA red flag off. I posted about that before, but no one was able to help me. I even called My Fico customer service and they couldn't help.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Consumer-Finance-Accounts-WTH/m-p/661395/...

That's great news about lates falling off one at a time though!

Thanks for taking the time! I can also post other pics of tradelines as well as scan hard copies.

[BungalowMo]

To some of the more "knowing"...is there any real difference between a consumer finance acct & a student loan, as far as FICO goes???

To jaystay...it's not the "consumer finance" status that is giving you the red flags.  Those are from the baddies.  Even one 30 day late...FLAG

Now to the lates...I don't suppose you know how many you actually "should" have, do you??  When is your earliest one??  Just curious...