Skip links

How To Remove Student Loans From Credit Report (+ Free Dispute Letter)

If you are thinking of removing student loans from your credit report because you need to raise your credit score to buy a house, refinance your mortgage loan, or get better rates on other forms of debt.

You should be aware that the impact of having student loans in default may have a large effect on your credit scores and can cause you to pay higher interest rates.

But, if you are experiencing this issue, there is a way to remove student loans from your credit report.

What Are The Effects of Defaulted Loans and Late Payments on Your Credit Score?

Defaulted student loans hurt your credit score. Depending on the type of student loan, the timeline for default and delinquency can differ.

It’s important to keep in mind that even if you make good on a missed payment, your credit score will take a hit.

Because the bulk of your FICO score is based on your payment history, missing a payment has an adverse impact and lowers your FICO rating.

There are several drawbacks to non-paying your student loans on schedule. When you don’t pay your student loans on time, the whole amount might be due right away, and you may have to pay extra collection fees in addition to the outstanding balance.

You could face a fine, have your wages garnished, and have tax refunds and other federal benefits withheld from you.

If you already applied for future government student aid, your application might be denied.

So paying late or missing your student loan payments can potentially leave you indebted to the government indefinitely, which will then lead to other unfavorable consequences.

You may also like: How to Pay Off 200k in Student Loans

How To Remove Student Loans From Your Credit Report

It’s true that a defaulted loan has the same negative effects on your credit report as any other student loan, but it isn’t quite so simple to get rid of one.

In fact, it may be considerably more difficult in the case of a defaulted loan.

A well-written student loan dispute letter can help you in most situations. And if you do, it’s because your credit report contains negative student loan entries that will stay there for up to 7 years.

You may also like: Will Biden Going To Forgive Student Loans in 2022?

How To Remove Federal Student Loans From Your Credit Report

If you want to remove your federal student loans from your credit report, here’s what you should do:

  • Your credit history will be clear if you’ve defaulted on a federal loan and made nine out of ten consecutive monthly on-time payments.
  • If you’re in default, you may be eligible for income-driven repayment alternatives that will reduce your monthly payment to a fraction of your earnings.
  • You could also be eligible for public service loan forgiveness through the public service loan forgiveness program after ten years of employment with an approved nonprofit and payments on time throughout.

How To Remove Private Student Loans From Your Credit Report

They are unlikely to remove a default or truly late payment (or series of late payments) from your credit report.

But some lenders will offer a forbearance if you’re experiencing economic hardship.

When You Can Easily Remove From Your Credit Report

  • You can remove a student loan that isn’t yours.
  • You may correct a late payment that was made in error.
  • You may get rid of any negative information on your student loan while it’s in deferment or forbearance.
  • You can correct an incorrect status that is identified in error.

If you’re having one of these difficulties, you’ll need to do your homework, figure out what the problem is, and gather as much documentation as possible to demonstrate that the wrong information is incorrect.

If you don’t yet have a plan for dealing with it, call your loan provider to see what steps you can take.

Note: as soon as you have resolved any issues, contact the lender and ask for an email response.

If there are any later questions, this will offer you a paper trail, keep copies of your correspondence with your lender so you may use them if required.

However, writing is generally the best course of action. A good student loan dispute letter is required to accomplish so.

If you’ve done your homework and have a clear understanding of the problem, as well as evidence to back it up, you’ll fare better in court if you send an example of what you want.

Free Dispute Letter Template For Removing Student Loans From Credit Report

Free Dispute Letter Template

This is a perfect template you can use for your dispute letter and i make a word document to make it easy for you to copy it.

Anna S. Brooks
661 Lyme St.
Colton, CA 92324
.

February 4, 2022

Yassin M. Carter
Labyrinth Student Loan Servicing Corporation
1 Indian Spring Court
Los Angeles, CA 90042

RE: Student loan #XJYZ000198786PPZX567940001112XYZ1235987-01J

Dear Mr. Carter:

My student loan is currently listed as being in default on my credit report, according to a recent copy of my credit report. A duplicate of the page from my credit record is enclosed for your information. This credit status, however, is incorrect. My loan was in active status at the time that this letter was written; all payments had been made on time in full compliance with the terms of the loan.

The account has been paid in full for the past six months, and the most recent statement notification shows that it is currently active and in repayment status.

Update your company’s records to show that the account is current and up-to-date, and has never been in default.

I also request that you notify each of the three major credit bureaus, TransUnion, Equifax, and Experian – so their records will reflect the corrected status on this account – that the account has been updated.

Please confirm receipt of this letter as well as the account’s corrected status and notification to the three credit bureaus.

Please contact me at (773)450-1412 (Replace it with your number), or by email at Anna.brooks@gmail.com (Replace it with your Email) if you require any further information.

Cheers,

(Your signature)

Anna S. Brooks

Evidence: Credit report page, recent payment notification, evidence of monthly payments

Send your letter to the loan provider by certified mail, with a return receipt requested. That will show that it was delivered and received. After that you must follow up.

You may also like: Can You Pay Student Loans With Your Credit Card?

Follow-up

If you don’t get a response after one week (sometimes 2 weeks), contact them by phone. Student loan servicing firms are frequently slower than this, so being persistent may be necessary.

Wait at least 30 days before contacting the lender again and check your credit report again.

Make sure all three major credit bureaus have updated the information. If they haven’t, you’ll need to contact them individually.

Contact The Three Credit Bureaus to Dispute Your Records

You can bring the bureaus up to speed yourself.

All you have to do is file a dispute with each of the three credit bureaus, and the loan provider must follow up within 30 days as stipulated by law.

If the service finds that the data has been corrected, the bad information will be deleted.

But what if there’s a red tape snare, and the corrected data isn’t correctly entered?

We repeat our request in the following student loan dispute letter: Please provide us with a written confirmation of receipt of this communication as well as a corrected status on the account to confirm that notice of the modification has been sent to the three credit bureaus.

If a student loan providing firm has not notified the three credit reporting agencies of the corrected information, you can submit copies of their response letter to each bureau.

They’ll be fined if they don’t correct the credit entry within 30 days.

You may also like: Student Loan Advice: 12 Tips You Should Know In 2022

Frequently Asked Questions