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Will old paymnent history from a defaulted loan show up on credit report now that I'm paying on it?

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Jaydub
New Visitor

Will old paymnent history from a defaulted loan show up on credit report now that I'm paying on it?

So my old loans, mainly direct sub and unsub  and one ffelp stafford,  that I defaulted in 2019, fell off my credit report last years. I'm wanting to take advantage of the new fresh start repayable option amd get them out of default.  They're all owned by the same feds ED. Once its out of default will only my new payments show up and not my old defaulted history? And will the loan show all my past previous positive history or only my new history of current and future paymemnts? 

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Alcuria
Member

Re: Will old paymnent history from a defaulted loan show up on credit report now that I'm paying on

Once you are accepted into the ED Fresh Start program (paraphrased):

 

-Your defaulted loans are transfered from the Default Resolution Group (or from a guaranty agency) to a loan servicer.

-ED returns your defaulted loans to “in repayment” status.

-ED removes the record of your default from your credit report.

-You will  receive communication from your new loan servicer once your loans have been transferred. Within a week or so after, you’ll be able to apply for an IDR plan.

 

- see https://studentaid.gov/announcements-events/default-fresh-start

 

I was on a conference call about this a few days ago at work and the topic of what gets removed from a credit report came up. Answer - the tradeline for the "old" loan servicer is removed - all of it. A new tradeline for the new loan servicer will appear and show your loan as in repayment and current.

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Jaydub
New Visitor

Re: Will old paymnent history from a defaulted loan show up on credit report now that I'm paying on

Thankyou. I appreciate the link and your feedback.I had researched and read what they show online at studentaid.gov and myeddebt.ed.gov website. I was hoping to speak with someone who had first hand, im sure like with allot of people what they isnt always what happens, especially with credit reports. Do you mind if I ask what type of place you work where you did a conference call? 

Message 3 of 4
Alcuria
Member

Re: Will old paymnent history from a defaulted loan show up on credit report now that I'm paying on

A company that does business process review. The purpose of the call was discussing the FAFSA problems that are affecting higher ed and the topic of federal financial aid came up (and implications for obtaining aid if defaulted on student loans.)

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