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How long will a private student loan delinquency last on my credit report?
A little background... Due to a little confusion on my part, I ended up defaulting one of my private student loans. Once i realized that it was in collections, i called the bank and explained what happened and that i would get current and start making monthly payments. They refused this offer, and then charged-off the loan. Since this was my biggest student loan, it has significantly decreased my credit score. Due to the size of the loan, there is no way i can make the payment in full (or what they offer for a settlement) at the moment. Because of this, I cant get a loan for a car, house, credit card (except for the secured ones), and i have even been denied rentals.
This default happened almost 4 years ago. I am wondering will this default fall off my credit report after the 7.5 years? Or is this something that i will have forever and just have to live with that fact?
Also, what can i do to help the credit report? Since then, i have not missed any other payments. Should i settle, pay in full, ignore them, or try something else?
Thank you!
7 Answers
- 3 years ago
the bank will continue to add fees late charges and penaltys and attorneys fees to your loan.. look in your contract and you will see that they can and will do this. plus you will find that these fees will take up most all of your payments to them and you will never get the main principal paid down. its the way they do business. it is never ending and once you get behind, it is they way these corporations milk you for double or triple what you borrowed.
quit paying them until they settle with a new contract that allows you to pay off your loan without all the add ons. then pay it off as quickly as you can.
unless it is a federal loan that cannot be relieved by bankruptcy, then that would be your last resort.
don't send then another penny until they restructure the loan that make it affordable for you to eventually pay it off.
- babyboomer1001Lv 73 years ago
They are not likely to settle but, you can always ask. Debts like that don't just "fall off" the credit report. Expect the debt to follow you for a very long time. What you should do it send as much payment as you can every month with a note that you will continue to do so every month, and hope that they accept it and hold off suing you.
Source(s): Certified Paralegal, with 25+ years' experience. - StanLv 63 years ago
If it's not a federal loan, it comes off in 7 years
Source(s): Retired bill collector 35 years - StephenWeinsteinLv 73 years ago
It will fall off if you do nothing.
If you pay something, settle, agree to pay something, or speak to a collection agency on the phone, then it might not fall off.
- Coffee DrinkerLv 73 years ago
Everything, good bad and neutral, falls off your credit report after 7.5 years with only one exception - Chapter 7 bankruptcy takes 10 years.
At this point, your best option is probably just to wait it out.
