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Posted in Student Loans
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mp1661910

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If my student loans are taken out of default will it effect my credit score?
I have student loans from two separate times that i attended school. They have gone into default and were taken over by another company and they show up three separate times on my report under "accounts that have been delinquent on payments". I guess this is because i was delinquent each time the loan was passed to a new company. I have filed an application through the Dept. Of Education to take my loans out of default with some sort of 2nd chance program they have. Does anyone know if this will have a positive effect on my credit score or will it remain the same because either way i was delinquent on payments at some point. Thanks.

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It should definitely improve your score because any default or late payment is a negative that hurts you.  I can tell you for sure that the student loans will be collectable until paid in full and may not be discharged in bankruptcy, nor do they fall off your credit report due to an expiration of a statute of limitations.  They MUST be paid. 

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I'm assuming your applied for forbearance?  It will take a 2-3 months, but if all your other credit stays the same, it should help.  Are you also consolidating?  If not, please look into it.  There are many new programs available, some where you can get the loan forgiven.  Call Crest at 469-619-0644 for free info.

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mp1661910

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I didn't apply for forbearance. It was some kind of second chance program by the Dept. Of Education.  It is based on income.  They told me it is possible my new monthly payments could be $0/month until i find work.

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