Micky….the resurrection asked:
I recently consolidated old federal student loans. The consolidation is official and completed tommorrow. How long does it take before the default status comes off your financial aid record and does the consolidation company remove it or does the loan guaranteur that the consolidation company bought it from?
I recently consolidated old federal student loans. The consolidation is official and completed tommorrow. How long does it take before the default status comes off your financial aid record and does the consolidation company remove it or does the loan guaranteur that the consolidation company bought it from?
Once the consolidation company pays the lender, the lender will then send a letter to you stating that they received the money and that you are no longer in default status. But all that depends on how fast each company moves. So it can take up to two or four weeks. And it will be the Loan Guarantor that will remove the default status.
Left by RenaNMSU on May 1st, 2010
It is actually two companies that will remove the default status, the Default Resolution Group and the original company you defaulted through. Honestly this can take forever, I actually use to do default credit clearing for Direct Loans, they can take up to three months to remove it from your credit, and the default company WILL take forever. A little trick to get this off your credit ASAP is to dispute the default status from both the companies through one of the credit bureaus. Direct Loans and the Default company have only 30 days (usually done within a week or so) to remove the item from your credit with all three credit bureaus when it is disputed directly though at least of the credit bureaus. If your student loan was not with Direct Loans I would still try this anyway, it is no fail.
Left by n_zinkovitch on May 2nd, 2010