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QUESTION: So I went to college and got student loans. I have about.... 20 reports of student loans on my credit report.

But they are all where my student loans were being bought, sold, transferred, and consolidated. Every single one of them is "Closed"

Are these derogatory marks? Are they affecting my credit? Can I get them off?

ANSWER: The transferring of a debt from one party to another does not affect your credit score at all. When lender "A" sells a debt, they must report the debt as having a balance of $0 so that the credit scorer does not count the balance on the loan twice (or more times). That would be the thing you should be most concerned about - that the current creditor be reporting the balance correctly and all previously holders of the loan reporting zero balances.

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QUESTION: Yes, they are all $0. Will they eventually disappear? Or will they stay on my report indefinitely? Well, I guess if they aren't affecting my report negatively it wouldn't matter. Hmm.

ANSWER: Derogatory items must come off after 7 years, that is law. Non-derogatory items have no time limit (and since only derogatories hurt you and they are all $0 balances they certainly don't hurt you) but the major CRA's remove them after 10 years. So no, they will not stay there forever.

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QUESTION: What about a derogatory item I am making payments on? I had a debt that was put on my report at $8000 in 2011, I've been making monthly payments (well below what they want) it's currently $3600 this month. In the event I'm still paying on it at the 7 year mark will it still go away?

Under Fair Credit Reporting Act, ALL derogatory trade lines must go away 7 years and 6 months from the event that first led to the delinquency (read that as the fist missed payment). The 6 months is the time specified in the law (7 years after six months after the delinquency began)

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Steve Katz


Debt Collection, Credit Reporting, FCRA, FDCPA, TCPA issues


Founder of Debtorboards, co-author of Debtsmanship, former Collector, Credit Counselor


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