Can student loans be removed from your credit report

17 AUGUST 2023

You need to know when it's feasible to remove student loans from your credit record and when it's not. Unfortunately, you can expect the debt to stay on your credit record if the loan has no errors.Woman sitting on couch and looking at papersInaccurate information may be erased from a credit report. If you notice a problem with your credit report, you may register a dispute. Here are a few things you should know about deleting student loans from your credit record, how long student loans stay on your credit report, and how to raise your credit score.

How do you dispute errors on your credit report?

Regardless of whether you're disputing a student loan or a credit card, the method for doing so is essentially the same. To begin, make sure that all of the information on your credit reports is correct.

Within a limited time frame, the credit-reporting agency must examine your complaint, provide you with its findings, and notify you of the outcome. However, if the bureau judges that your complaint is frivolous or too unclear, it is not required to investigate. Your lender or servicer must also be contacted by the credit bureaus to investigate your dispute. However, you may choose to do it yourself.

Late and defaulted student loans have a significant impact.

One of the most essential criteria in evaluating your credit ratings is your payment history. After one missed payment, your student loan becomes overdue. Your loan may fall into default if you continue to skip payments. If you default on your student loans, the whole loan amount may become owed immediately. You may have to pay extra costs on top of your loan total if a loan is sent to collection. Your lender may even take you to court in certain situations. This may result in wage garnishment, for example. This implies that a portion of your money is automatically deducted directly from your salary to pay down your debt. If you have a co-signer on your loan, it may have an impact on them as well. Remember that if you can't pay, your co-signer will be held accountable for the debt.

What can you do if you fall behind on your student loan repayments?

Defaulted student debts should be taken very seriously. Consider contacting your lender or loan servicer as soon as you fall behind to see if there are any possibilities for relief. It is possible to rehabilitate your loans or consolidate your debts if you are already in default. You may benefit from consulting a financial professional to help you pick the best option for your situation.

How long do student loans stay on your credit record?

A closed account in good standing, that is, one that was paid in whole and on time can remain on your credit record for up to ten years. Additionally, having a favourable payment history might benefit your credit score. The majority of information on your credit report may be there for up to seven years, and sometimes longer. That includes defaulted student loans and late payments.

It’s not all doom and gloom

In general, make an effort to stay on top of all the credit you have. Make sure to pay your debts on time, and pay extra when you’re able to get ahead of it. Avoid any additional credit as far as possible, because remember every single time you request a loan, they pull a report which affects your credit score as well.

Always remember cash is king, if you can’t afford it, avoid it as far as possible until you can.