A defaulted student loan will put you in a complicated situation. You will likely have to repay the loan and 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.
These debts can be collected upon for life! However you can only have a negative mark on your credit report for a maximum of seven years. This is according to a law that Congress created called the Fair Credit Reporting Act.
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.
There is a possibility that this mark can be removed from your report and a chance that you may be able to remove the debt entirely. To do this, you should dispute the collection marks on your report.
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.
Since this is the most difficult item on a credit report to negotiate, 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. Also, there are new laws passed constantly by congress to help protect consumers.
We feel hiring an expert is worth the money since your credit score impacts every aspect of your life. This is a good idea since, compared to the high cost of a low credit score, hiring an expert can be done at very reasonable rates.
You should be aware that a loan from the government such as the Perkins loan or a Stafford loan will be much harder to remove from your report. However a private loan such as one with Sallie Mae will still be difficult to remove but easier than a federal loan.
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.
If this mark is in error then send any documentation that you have with your dispute letter to prove it is in error. The bureaus make errors all the time and so do the lenders, but your credit is the one that will suffer. It is estimated that 1 in every 4 people have an error on the report that is costing them money in higher interest rates.
In sum we suggest you dispute this mark with the credit bureaus. Defaulted student loans are removed every day from credit reports and if you have it, it does not mean you will have a low credit score for the rest of your life.
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.
These debts can be collected upon for life! However you can only have a negative mark on your credit report for a maximum of seven years. This is according to a law that Congress created called the Fair Credit Reporting Act.
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.
There is a possibility that this mark can be removed from your report and a chance that you may be able to remove the debt entirely. To do this, you should dispute the collection marks on your report.
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.
Since this is the most difficult item on a credit report to negotiate, 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. Also, there are new laws passed constantly by congress to help protect consumers.
We feel hiring an expert is worth the money since your credit score impacts every aspect of your life. This is a good idea since, compared to the high cost of a low credit score, hiring an expert can be done at very reasonable rates.
You should be aware that a loan from the government such as the Perkins loan or a Stafford loan will be much harder to remove from your report. However a private loan such as one with Sallie Mae will still be difficult to remove but easier than a federal loan.
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.
If this mark is in error then send any documentation that you have with your dispute letter to prove it is in error. The bureaus make errors all the time and so do the lenders, but your credit is the one that will suffer. It is estimated that 1 in every 4 people have an error on the report that is costing them money in higher interest rates.
In sum we suggest you dispute this mark with the credit bureaus. Defaulted student loans are removed every day from credit reports and if you have it, it does not mean you will have a low credit score for the rest of your life.
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For a free credit consultation call 1-866-246-7311. Additionally visit us for more about Defauted Student Loan or to learn how to remove charge offs from your credit.
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