Whether because of financial hardships or otherwise, late student loan payments can happen to anyone. Thankfully, removing late student loan payments from FedLoan is possible through FedLoan Servicing. Find out how you can remove your late student loan payments and improve your credit.
Check Your Credit Report
Check your credit report and confirm whether the late payments are from FedLoan Servicing. You can get a free credit report from Annual Credit Report.
Once you’ve confirmed whether your FedLoan student loans are late and then proceed to the following strategies to remove the late payments from your record.
Reach Out to FedLoan Servicing
Catching up on any missed payments is the best way to remove late student loans. Typically, you have 30 days before FedLoan Servicing marks your payments as late on your credit report. Try to pay off any student loans you missed once you have the money to cover your late payments.
Contact FedLoan Servicing to repay any loans you failed to pay on time. You still have a month to catch up. You can also sign up for autopay features to avoid missing future payments. Should you sign up for autopayments, consider setting a specific monthly due date that works for you.
When Are Student Loan Payments Late?
Your FedLoan Servicing account marks your student loan payments as late when you don’t pay on schedule. This mark will cause your account to default or become delinquent.
With a delinquent account, you still have 30 days to catch up on your payments. This timeframe gives you time to prevent a long-term impact on your credit report.
Your student loans become defaulted when they have been delinquent for 270 days. Defaulted accounts can damage your credit report, preventing you from getting the best rates in future loans.
Fresh Start Initiative: What it means for you
With the Fresh Start initiative coming when repayment starts again on September 1st, defaulted federal student loan borrowers will be restored to good standing. This instantly enables borrowers to have regained access to Income-Driven Repayment programs, potentially qualify for a loan forgiveness program, and have all negative dings removed from their credit report regarding student loans. This Fresh Start will be financial relief for 7.5 million student loan borrowers.
This is a great opportunity for borrowers to regain control of their monthly payments and get on track for faster debt repayment. Chipper offers assistance enrolling into different repayment plans, qualifying and applying to eligible forgiveness programs, and enables users to use tools like Round-Ups and Rewards (Coming Soon) to easily pay down debt an average of 3 years faster for the typical student loan borrower.
Dispute Your Late Payments
You can file a dispute with FedLoan Servicing if you believe your late payments are inaccurate on your records. Here are the steps you can follow:
- Download and print the FedLoan Servicing credit dispute form.
- Fill out the dispute form. Be sure to complete all relevant fields, including:
- Your FedLoan Servicing account number
- Social Security number
- Specific details about your claim
- Fax your completed dispute form to (717) 720-1628. Or, mail it to:
FedLoan Servicing Credit P.O. Box 60610 Harrisburg, PA 17106-0610
Be sure to keep a copy of your completed dispute form for your records. Also, include any supporting information when submitting your dispute. You might include a copy of the credit report you are disputing and a payment history to prove you are paying on time.
FedLoan typically responds within a month. You can file a complaint with the Consumer Financial Protection Bureau (CFBP) if they don't give a timely reply. This process can be time-consuming and frustrating when dealing with different documents. Chipper is creating Credit Insights, a product to help borrowers manage their credit while paying down student loan debt, to make sure all late payments are removed during the Fresh Start.
When Are Student Loan Payments Late?
Your FedLoan Servicing account marks your student loan payments as late when you don’t pay on schedule. This mark will cause your account to default or become delinquent.
With a delinquent account, you still have 30 days to catch up on your payments. This timeframe gives you time to prevent a long-term impact on your credit report.
Your student loans become defaulted when they have been delinquent for 270 days. Defaulted accounts can damage your credit report, preventing you from getting the best rates in future loans.
