Defaulting on student loan debt is never ideal, but sometimes https://cashadvanceamerica.net/loans/tribal-loans-teletrack/ it’s outside of your control. It’s certainly not rare. Approximately 11.5% of borrowers with student debt default on their loans. If you make a mistake or can’t make payments because of something outside of your control, you can get the negative event removed from your credit report.
But how you’ll get it removed and how long it takes depends on what type of student loans you have.
Can student loans be removed from my credit report?
In a word, yes. It is possible to get a defaulted student loan removed from your credit report. It’s not easy, however, especially if you’ve defaulted before or you have private student loans.
If a borrower who has defaulted on a federal student loan rehabilitates the loan by making nine out of 10 on-time, consecutive, full, voluntary monthly payments, the default will be removed from the borrower’s credit history, says Mark Kantrowitz, a student loan expert at Private Student Loan Guru.
If a student loan is inaccurately reported on your credit report, you should be able to get the student loan removed from your credit report
You only get one try
Unfortunately, however, you can only take advantage of this once. If you default again on the same loans, the only way to get the second default off your credit report is to pay off the loan in full.
If you have private student loans, the process isn’t as simple. First, you’d need to attempt to pursue a debt settlement with the lender to pay less than you owe.
Borrowers who are settling a defaulted private student loan can ask for the default to be removed from their credit reports as part of the settlement agreement, says Kantrowitz.
But the lender may not be willing to do this unless you’ve been in default for a long time and they’ve given up trying to collect on the debt. Getting rid of your student loans for less than you originally owed sounds great. Continuer la lecture de Can Student Loans Be Removed From My Credit Report?
