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When does it fall off?

Regular Contributor

When does it fall off?

I completed rehab of my SLs in 2016 and everything has been great thus far in terms of positive reporting of payment and such.  When I look at the old loans (which are closed but still showing under negative on my reports), I see the date of last activity 3/2012; and last updated 7/2016.  Which am I counting FROM for removal?  Am I counting from 3/2012 or 7/2016?  I'm hoping its the 3/2012 because I wanted to attempt an early removal.  Not sure if that's even possible but since I plan to app for a mortgage this summer it would be great if they could be removed.  Has anyone had any experience with this?

18 REPLIES
Community Leader
Legendary Contributor

Re: When does it fall off?

What are the specific derogs that were reported, and what were their dates of occurence?

Message 2 of 19
Regular Contributor

Re: When does it fall off?

They are past due derogs from 5/2012 to 3/2013.  All accounts were closed and rehabbed but the negative reporting remained and from my understanding, does not have to be removed at all.  I just can't figure out where to begin the clock for the removal.  Not sure if it starts at last day of activity (3/2012) OR last reported.

Message 3 of 19
Regular Contributor

Re: When does it fall off?

When SL are rehabbed, the negative accounts that have been reporting collections currently will be removed.  The original accounts showing on the report before it was transferred/closed will remain for 7 years.  

 


Feb - May 2017

Current Fico 8

Goal:
Message 4 of 19
Contributor

Re: When does it fall off?

Correct. It's DOFD. Prestige and Robert can back me here in saying it should be 7years + up to 180 days from summer 2012 based on what you provided.

Message 5 of 19
Regular Contributor

Re: When does it fall off?

Smiley Sad guess I have another year to go then

Message 6 of 19
Community Leader
Legendary Contributor

Re: When does it fall off?

Derogs on federal student loans are exempted from the credit report exclusion provisions of the FCRA until the loan is paid.

Message 7 of 19
Regular Contributor

Re: When does it fall off?

@Robert   Are you saying that the derogs will stay on the credit report for another 20 years?

Message 8 of 19
Community Leader
Legendary Contributor

Re: When does it fall off?

They can stay until the loan is paid.... then the normal exclusion provisions of the FCRA apply.

See, for example, the Higher Education Act of 1965; section 463(c)(2)(C), which states with respect to the credit report exclusion provisions of the FCRA:

"Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c (a)(4), (a)(5)), a consumer reporting agency may make a report containing information received from the Secretary or an institution regarding the status of a borrower’s account on a loan made under this part until the loan is paid in full."

Message 9 of 19
Contributor

Re: When does it fall off?

WOW. Thank you Robert! I thought for sure if in rehab and completely successful bringing out of default that the clock started for your lates before rehab. That’s a horse of a different color! Thank you sir!
Message 10 of 19