How to Remove a Defaulted Student Loan From My Credit Report

Getting a default on a student off of your credit report is not an easy task, but can be accomplished with some effort. Many times, this requires substantial amounts of paperwork and red tape, but the end result of a healthy credit score, is worth it.

Things You'll Need

• lender paperwork

Instructions

1. Contact your loan provider and talk to a representative about the details of your defaulted loan. It is highly likely that if you are more than 270 days in default that your account has been referred to a private agency or to your state's guarantee agency.

2. Determine how much money is owed on your defaulted loan. Some agencies will be willing to work with you to repay the full amount, however this will not necessarily expunge the default from your credit history. Your default record may remain in your credit history for 7 years.

3. Begin a repayment program with your lender or state agency. After repayment has begun, apply for the FFEL (Federal Loan Consolidation Program).

4. Considers the William D. Ford Loan Consolidation program made available by the federal government.

5. After enrolling in a loan consolidation program, it is possible to rehabilitate your loan by making your new payments on time. After 9-12 months of payments your loan will be considered rehabilitated and your credit record will improve.

Tips & Warnings

• This process only works if you are willing and able to continue payments on your defaulted loans.

• Have the contact information of your state agency and your borrower handy.

• Defaulting on a consolidation loan can result in further damage to your credit rating as well as the federal government garnishing your wages.