When is credit reporting reversed?

No one likes negative credit reporting of any kind and student loans are no different.  The good news is often times loans are even more leint than other as I’ve seen them go past the thirty day mark to even as many as sixty days and beyond before being negatively reported.  The key is often times when the reporting is done in a given month.

However once it is done there are times that reporting will be reversed and times it will not.

When it will not:

Courtesy--most companies do not reverse reporting if it was accurate

General and Delinquency Forbearances, Unemployment Deferments, etc–while many of these back date it will not change negative reporting even if the time that was reported is now covered.

There are 3 main times that reporting will be updated and corrected:

Disaster Forbearance–placed whenever a family experiences either a work or home disaster (often times caused by displacement);  since we don’t expect you to call the second it happens (you have more important things to worry about) this forbearance will correct credit

Military Deferment–must meet certain criteria to qualify but typically active duty in a war zone or emergency rescue area

In-School Deferment–it can take a while for schools to update which naturally isn’t your fault;  if you were enrolled as at least a half time student at a DOE approved school during the time negative reporting occurred (meaning you were in school during the covered dates) this time will be replayed by a deferment and the reporting will be corrected

There are 3 other times it will auto correct as well:

Internship/Residency Forbearance

Bankruptcy Forbearance

Grad Fellowship/Peace Corps/National and Community Service Forbearances


These will typically happen automatically but if you believe yours may have been overlooked contact your servicer so your situation can be researched!

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