Student Loan Removal

We remove Student loans and raise your credit scores

Remove Student Loans From Your Credit Report

The three major Credit bureaus (Experian, Trans Union and Equifax) treat Student loans as installment plans and will give your credit score a tremendous boost if you pay them on time as with most other loans. The bureaus record these payments every 30 days which demonstrate to your potential lenders that you can be trusted and are responsible with money. However, if payments are not made on time and you default on your loan it can put you in a dire circumstances and effect your credit in a negative way and completely damage your credit.

This will impede your ability to get started in life as a working adult and in most states where it is legal, employers will check your  credit report when you apply for job which can effect your employment. For this very reason if you are in a quandary in which you are not earning enough money to make your monthly student loan payments, it’s best to contact the  lenders and ask for a deferment before you lose your right to defer payments. This can also effect you from being eligible for future financial aid which can hurt you if you have plans to attend graduate, medical or law school.

How your Credit Score gets impacted by Student Loans

There are a number of factors that determine your credit score, such as paying your bills on time, your utilization percentage and the amount of money you currently owe. Lenders from Financial institutions, retail department stores and automobile dealerships generally deny loan applications from consumers with poor credit scores. Creditors estimate a borrower’s creditworthiness based on your credit score reported by the major credit bureaus which is a number between 300 and 850.

This credit score influences you getting approved or denied and how high or low your interest rates are on loans. The Fair Isaac Corporation which is also known as FICO credit scores reports these scores while all three credit bureaus use them as well.  Of course the higher your credit score, the more likely you are to qualify for lending and the lower your interest rates will be on loans. This are multiple factors involved to created an elite score but to make it simple paying your bills on time will report a good credit score.

Student Loan 

Score from 640-680

Score from 740-780

30 Date Late Payment
60 Day Late Payment
Multiple Late Payments
Loan Default
Multiple Defaults     

Drop 10 to 30 points 
Drop 60-80 points
Drop 45-65 points
Drop 85 to 105 points
Drop 130 to 150 points

Drop 24-45 points 
Drop 90-110 points
Drop 105-125 points
Drop 105-125 points
Drop 220 to 240 points

How are student loans classified?

Similar to an auto or mortgage loan, student loans are classified as installment debt because it is repaid in equal amounts over a fixed period of time. Consumer credit card debt is considered bad due to fluctuating interest rates, compounding balances and the risk potential opposed to student loans being classified as good debt for multiple reasons: These types of loans are used to build education  so they are far less buoyant than consumer credit Student loans which are repaid in fixed amounts and have a lower risk of default than revolving debt.

The interest paid on federal and private student loans is also a tax deduction for most borrowers. These Student loan interest rates are normally low and fixed in the case of many federal loans that decrease risk which is a positive factor when it comes to credit scoring. If Student loans are paid on time they have the ability to establish a good credit history and increase credit diversity that can improve your score by up to 60 percent.

When are student loans reported to the credit bureaus?

Even though the average student will not repay their loans back until 6 to 12 months after graduation, the student loan debt reports on the credit shortly after the account is opened. The status of the account will report as deferred until you enter the repayment period. Late payments are never good in any situation but if you are late in making a payment on a credit card it will not show up on your credit report until it is at least 30 days past due. This means if your payment is less than 30 days late the creditor may not report it to the three credit bureaus.

Credit card companies must send your statements 21 days before your payments are due which means you technically you have at least 50 days after the billing cycle ends to make your payment before it’s reported to all 3 major credit bureaus.  This 30 day late regulation does not apply to mortgage payments, car payments or any other installment loans because when you make a late payment on one of them it could show up on your credit report at anytime.

Do multiple student loans appear as a single debt?

Some consumers may use a single lender for all your student loans as every occurrence of borrowing appears as an individual account. For example, suppose you were giving $15,000 during your freshman year and $10,000 during sophomore year. it would report as two separate accounts although your debt is from one lender.

Will deferment hurt my credit score?


Most graduates are looking for employment and can can barely pay their rent, let alone have the money to may their student loan payments so most defer on student loans until they are able to pay. This deferment will not hurt your credit score, in fact most financial institutions will consider deferring your account when deciding whether or not to approve your loan request.

Creditors may come to the conclusion that you have enough money to pay back the loan and offer you this option so part of your income doesn’t have to go go towards repaying student loans immediately. At the end of the day, your credit score benefits  from making the payments on time. Take all this into consideration which will go a long way when it comes to repaying your student loans. Bottom line is defer but do not default.

Deferrals and forbearances do not impact a credit score but late payments and defaults have an immediate negative impact on your credit report. If a payment is more than 30 days late, it will begin to impact your credit score dropping it down by 30 points or more. The longer your student loan payments are late, the more your credit score drops.  Eventually the lender will conclude that you will never pay your student loan and report it as a defaulted student loan.

This will give you a poor  credit score and even worse the late payments will report bad credit for seven years. Unfortunately the student loan which is the exception will remain on your credit history forever and it is impossible to discharge student loan debt in bankruptcy. The default remains on your record until you pay back the loan or have it removed.

What happens if my loans are sold to another company?

The lender will sell the education debt for example it is sold from Company A to Company B. Similar to refinancing a mortgage, the original account will be listed as paid and closed while the new account will be assumed as the debt. By law lenders are required by law to notify you if your debt is being sold so it is important to order copies of your credit reports within 90 days of the change  to ensure that the transfer is reported correctly.

If you feel you have the option to legally dispute your student loans or obtain guidance from a practicing attorney who is well educated in student loan laws and regulations. A common loan dispute is related to identity theft or borrowers claiming that they never took out the loans or if you don’t remember taking out a student loan you can make the credit bureaus verify that this loan is actual yours.

Reasons to dispute your student loans

You want to make them confirm these types of documents including the IP address that was used to electronically sign the note was located within a close radius to your lo cation at the time the loan was made. These electronically signed notes use a signature that is made by authenticating who you are. Many federal student loans do this through the same Federal Student Aid PIN that you use to fill out the FAFSA. This is one reason why we advise you to never share that PIN with anyone.

Once you’ve verified the loan is not yours, your next step is to file a police report for identity theft. In many cases, consumers discover that a family member forged their signature, in which case they will need to determine the best course of action. Filing a police report that may result in a family member’s prosecution may not be an outcome you are comfortable with. These options are up to you but it is important to understand the circumstances.

The Federal Student Aid or FAFSA and confirms that request through the school’s award letter and confirmation process but you are likely will only receive one for your entire time in school. If you receive the note, you can compare the signature to your own if  you feel the signature is not yours, you will likely be required to submit as many as six copies of your signature to the loan holder, of which several must be from the same period that you signed the loan document.

A good place to find examples of signatures from that time frame is your bank, which stores copies of your personal checks. Old leases and driver’s licenses can also be good resources for older signatures. Many borrowers sign student loans electronically, in which case there won’t be a signature to compare to. In these cases, the promissory note you’ll receive will include documents that will read more like a transactional record than a traditional promissory note.