| If you have defaulted on your student loan you are | | | | consumers. |
| in a difficult position. Not only are you likely to have | | | | Hiring an expert can be done at very reasonable |
| to repay this debt your credit will be ruined. | | | | rates and, compared to the high cost of a low credit |
| When your student loan goes into default, your | | | | score, is a good idea. We feel it is worth the money |
| account is turned over to collection agencies and | | | | since your credit score impacts every aspect of your |
| various collection procedures begin. In addition, the | | | | life. |
| government can garnish your social security benefits, | | | | Please be aware that a private loan, such as one with |
| your wages, and more. | | | | Sallie Mae, will be difficult to remove but easier than a |
| Even though Congress created a law called the Fair | | | | federal loan. A loan from the government, such as a |
| Credit Reporting Act where you only have a | | | | Stafford loan or the Perkins loan, will be much harder |
| negative mark on your credit report for a maximum | | | | to remove from your report. |
| of seven years, these debts can be collected upon | | | | When the bureaus receive your sample dispute letter |
| for life! | | | | they will contact the creator of the negative mark |
| If you have a defaulted student loan on your report | | | | and ask them to verify the debt. They will verify |
| you are likely to have to pay interest rates of | | | | that the account is yours, the dates are correct, and |
| roughly 25% and place large down payments, just to | | | | the balance of the account. |
| be approved. More often than not you will be turned | | | | If the account can not be verified then the negative |
| away for a new line of credit. | | | | mark must be removed from your credit report. This |
| There is a possibility that this mark can be removed | | | | is due to the Fair Credit Reporting Act saying that |
| from your report and a chance that you may be able | | | | any unverifiable mark on your credit report must be |
| to remove the debt entirely. To do this, you should | | | | removed. |
| dispute the collection marks on your report. | | | | Errors are made all the time by the bureaus and |
| You should send a dispute letter to each bureau; in | | | | lenders, but it is your credit that will suffer. Estimates |
| your letter provide an explanation as to why the | | | | show that 1 in every 4 people have an error on their |
| mark is not accurate. For example; it has been | | | | report that is costing them money in higher interest |
| reported for seven years already, not my account, | | | | rates. Therefore, if this mark is in error, it is very |
| account is paid in full and so on. | | | | important to include all documentation that you have |
| This is the most difficult item on a credit report to | | | | with your dispute letter to verify it is in error. |
| negotiate. As a benefit to you, we suggest that you | | | | In sum we suggest you dispute this mark with the |
| hire a credit repair service to dispute it on your | | | | credit bureaus. Defaulted student loans are removed |
| behalf. This will give you a licensed attorney fighting | | | | every day from credit reports and if you have it, it |
| for you which will be knowledgeable of the new laws | | | | does not mean you will have a low credit score for |
| constantly passed by congress to help protect | | | | the rest of your life. |