Credit Reporting

Although you only have one account with us, each loan that you take out has its own “tradeline” (i.e. account or line of credit) that is reported to the nationwide consumer reporting agencies. Depending on the number of years that you were in school, you may see several loans that will each display separately on your credit report. If you consolidate your loans, your previous loans’ tradeline will reflect a $0.00 balance and should be reported as refinanced, and you will have a new tradeline for both the subsidized and unsubsidized portion of the consolidation loan.

Education loans will typically remain on your credit history for seven years from the last reported date. The status or reason for loans paid in full include: paid in full by the borrower, claim paid, paid due to consolidation, and paid due to transfer. Example: If your loan was paid in full in March 2012, the final report of paid in full will most likely remain on your credit history until February 2019.

The type of repayment plan you use to repay your student loan is not reported to the credit bureaus. Using a deferment or forbearance for your student loans should not adversely affect your credit history. Making a late payment or not making a payment at all may hurt your credit history. Requesting a deferment or forbearance to clear delinquency on your account retroactively may not always remove negative credit history that has already been reported.

No, we are unable to remove anything that was reported accurately on your credit. In this case, you are still responsible for any monthly payments on your student loan even if you do not receive a bill. Sometimes, deferment or forbearance can clear delinquency from credit, but those situations require you to meet specific qualifying criteria. If your address changes, please notify Edfinancial Services as soon as possible to ensure you continue to receive your monthly statements. To notify Edfinancial Services of an address update, log into  your online account or contact one of our customer service specialists by phone or email.

Deferments and forbearances can allow you to bring your account current without making a payment to do so, but they do not always clear up negative credit reporting that already occurred. Certain eligible deferment periods, such as an in-school deferment, will clear any previous negative reporting if the qualifying deferment period occurred at the same time as the negative reporting period. Forbearances, even if applied retroactively, rarely clear prior negative reporting.

Both parties are liable for the loan even if the court declares one party to be solely liable. If your former spouse doesn’t make payments, the delinquency will be reported on your credit history as well as your former spouse’s credit history. Also, any person who is an endorser on a loan is liable and could have negative reporting due to delinquency on an account.

Each loan has a tradeline on your credit report. When a federal student loan defaults, it is transferred to the guarantor or to the U.S. Department of Education for continued collection, which creates a new tradeline. Once the loan is rehabilitated and taken out of default, the loan may return to Edfinancial Services where a third tradeline is opened for current reporting.

No, this is not true. If the information reported on your credit history is inaccurate, it will be updated with the first dispute that you file. Data furnishers are required to report the account information accurately and in an unbiased manner.