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Posted in Student Loans
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Question By
delvb6879

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Federal Gov't sold my student loan to Sallie Mae; significant score drop
My loans (6 separate accounts) were recently serviced by MyFedLoan for about a year. Just recently, they were transferred to Sallie Mae.

When I checked Credit Karma, I saw that it said "6 accounts reported as closed" and my score dropped 20-30 points in the blink of an eye. My score WAS in the high 760s. I've got a handful of credit cards with less than 20% utilization in aggregate. The few negative items on my account is my short "Age of Credit History", which will obviously get better over time. No late payments, no negative marks whatsoever in my history.

Naturally, I have a few questions:
1. How long before I see these 20-30 points return?
2. When will Sallie Mae finally report these loans and, at that point, will I notice any change in my score when the six loans are re-posted to my credit history?
3. Shouldn't shifting loans around in a way that adversely affects my credit by illegal??? (I'm partially kidding in this last question... but it just seems like I've been penalized despite my on-time payments. After all, this affects the age of my accounts, my total accounts, etc.)

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You have to remember that CK calculates an estimated credit score for you based on a snapshot of your TransUnion data on a specific date. The last update listed on your Financial page. It can only use what it sees on that day.

Chances are, that CK updated your record at a time when MyFedLoan had just closed your account but SallieMae had not yet reported your account to TransUnion. Things take time. You should see a change on the next update following SallieMae posting the data to TransUnion.

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I came here looking for the exact same problem...20 point drop, instantly. I called Sallie Mae about it and the person told me, somewhat unconfidently, that the info would take a few months to be added but that it WOULD be added. He couldn't comprehend my question as to whether or not they would be 'new' or would be continued from their original dates.

Reply by
delvb6879

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FYI - It's been almost two months now and nothing has been reported by Sallie Mae... and my CreditKarma score hasn't budged since.

Reply by
delvb6879

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2 People Helped
Helpful to 1 out of 1 people

The loans finally were reported by Sallie Mae this past week and my CreditKarma score has shot up 25 points now. All loans are reported as the original date of origination, thus making my credit history length much longer than when no student loans were being reported. Hope that helps!

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