Student Loan Default
If you have defaulted on your student loan you are in a difficult position. Not only are you likely to have to repay this debt your credit will be ruined.
When your student loan is in default, the government can garnish your wages, your social security benefits and more. Your account is sent to collection agencies and various collection efforts begin.
According to a law that Congress created called the Fair Credit Reporting Act, you only have a negative mark on your credit report for a maximum of seven years. Although, these debts can be collected upon for life!
If you have a defaulted student loan on your report you are likely to have to pay interest rates of roughly 25% and place large down payments, just to be approved. More often than not you will be turned away for a new line of credit.
You should dispute the collection marks on your report. There is hope you can remove this mark from your report and, with some luck, you may be able to remove the debt entirely.
You should send a dispute letter to each bureau; in your letter provide an explanation as to why the mark is not accurate. For example; it has been reported for seven years already, not my account, account is paid in full and so on.
This is the most difficult item on a credit report to negotiate. As a benefit to you, we suggest that you hire a credit repair service to dispute it on your behalf. This will give you a licensed attorney fighting for you which will be knowledgeable of the new laws constantly passed by congress to help protect consumers.
You credit score impacts every aspect of your life and thus we feel it is worth the money to hire an expert. This can be done at very reasonable rates and compared to the high cost of low credit score it is a good idea.
Please be aware that a private loan, such as one with Sallie Mae, will be difficult to remove but easier than a federal loan. A loan from the government, such as a Stafford loan or the Perkins loan, will be much harder to remove from your report.
The creator of the negative mark will be contacted by the bureaus and asked to verify the debt, including that the account is yours, the balance of the account, and that the dates are correct. This will take place as soon as the bureaus receive your dispute letter.
The Fair Credit Reporting Act states that any unverifiable mark on your credit report must be removed. Therefore, if the account can not be verified, the negative mark must be removed from your credit report.
Errors are made all the time by the bureaus and lenders, but it is your credit that will suffer. Estimates show that 1 in every 4 people have an error on their report that is costing them money in higher interest rates. Therefore, if this mark is in error, it is very important to include all documentation that you have with your dispute letter to verify it is in error.
In conclusion, defaulted student loans are removed every day from credit reports. If you have this, it does not mean you will have a low credit score for the rest of your life. We suggest you dispute this mark with the credit bureaus.
When your student loan is in default, the government can garnish your wages, your social security benefits and more. Your account is sent to collection agencies and various collection efforts begin.
According to a law that Congress created called the Fair Credit Reporting Act, you only have a negative mark on your credit report for a maximum of seven years. Although, these debts can be collected upon for life!
If you have a defaulted student loan on your report you are likely to have to pay interest rates of roughly 25% and place large down payments, just to be approved. More often than not you will be turned away for a new line of credit.
You should dispute the collection marks on your report. There is hope you can remove this mark from your report and, with some luck, you may be able to remove the debt entirely.
You should send a dispute letter to each bureau; in your letter provide an explanation as to why the mark is not accurate. For example; it has been reported for seven years already, not my account, account is paid in full and so on.
This is the most difficult item on a credit report to negotiate. As a benefit to you, we suggest that you hire a credit repair service to dispute it on your behalf. This will give you a licensed attorney fighting for you which will be knowledgeable of the new laws constantly passed by congress to help protect consumers.
You credit score impacts every aspect of your life and thus we feel it is worth the money to hire an expert. This can be done at very reasonable rates and compared to the high cost of low credit score it is a good idea.
Please be aware that a private loan, such as one with Sallie Mae, will be difficult to remove but easier than a federal loan. A loan from the government, such as a Stafford loan or the Perkins loan, will be much harder to remove from your report.
The creator of the negative mark will be contacted by the bureaus and asked to verify the debt, including that the account is yours, the balance of the account, and that the dates are correct. This will take place as soon as the bureaus receive your dispute letter.
The Fair Credit Reporting Act states that any unverifiable mark on your credit report must be removed. Therefore, if the account can not be verified, the negative mark must be removed from your credit report.
Errors are made all the time by the bureaus and lenders, but it is your credit that will suffer. Estimates show that 1 in every 4 people have an error on their report that is costing them money in higher interest rates. Therefore, if this mark is in error, it is very important to include all documentation that you have with your dispute letter to verify it is in error.
In conclusion, defaulted student loans are removed every day from credit reports. If you have this, it does not mean you will have a low credit score for the rest of your life. We suggest you dispute this mark with the credit bureaus.
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For a free credit consultation call 1-866-246-7311. Additionally visit us for more about Defauted Student Loans or to learn what is a charge off.
posted by Credit Counseling at
11:41 AM
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