How to Get a Default On a Student Loan Off Your Credit Report

A damaged credit report can hurt you for many years to come. It can prevent people from getting a car, house or loan. If you defaulted your student loan due to failure to pay, your credit report may be in serious trouble. It used to take seven years before a student default loan could be removed from a credit report, but there are now ways to remove it faster. Getting a default student loan off a credit report is more than possible if you have determination and patience.

Instructions

Difficulty: Moderate

1. Contact the U.S. Department of Education and ask about setting up monthly payments. They are willing to negotiate reasonable payments that work best for you.
2. Pay your monthly balance within 20 days of the due date at least 9 times in a consecutive 10-month period. Depending on the lender you speak to, the payment period may differ.
3. Contact your lender about the Loan Rehabilitation Program. Ask if you qualify and how to apply.
4. Negotiate a minimum principle and interest balance to enter the program. This amount must be present after the 10 months of consecutive payments.
5. Continue to pay monthly loan payments while waiting to hear if you qualify for the program. Not only will this keep you from defaulting again, but it will help you get into the habit of making the payments on time.
6. Complete the Loan Rehabilitation Program and be on your way to erasing your default from your credit report. Continue to make all payments on time (credit card, loan, etc.) to avoid more damage to your credit report.

Tips & Warnings

• Always pay bills on or before their due date to avoid late payments.
• Overdue loans being paid by wage garnishment are not eligible for the Loan Rehabilitation Program.
• Paying in a lump sum or more than the balance to speed up the process is not allowed.
• Payments must remain on time to be approved into the program.
• Default student loans are only eligible for the Loan Rehabilitation Program.

Who Can Help:

• Earn an Associate's, Bachelor's or Master's Degree from the University of Phoenix
• Flexible Scheduling, Online Programs, Get Info Now