Legal Question in Bankruptcy in Illinois

removing paid entries from credit files

I defaulted on a student loan through Sallie Mae. It was picked up and paid by Oklahoma Guaranteed Student Loan Program. Sallie Mae is still reporting it. Sallie Mae was paid almost seven years ago. I want it removed. December 2001 will be seven years that it has been reported. Does it have to remain on my credit report as a default and as a negative entry since they have been paid in full by OGSLP? What should I do? Help!


Asked on 7/23/01, 9:36 pm

1 Answer from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: removing paid entries from credit files

Your loan remains unpaid and in default. The only legal change since you defaulted is that now you owe the Oklahoma organization on the loan. The payment by Oklahoma to Sallie Mae did not discharge your obligation to pay, it only transferred the obligation to pay to Oklahoma.

You may, however, be able to convice one or more of the three national credit reporting agencies to remove the entry by Sallie Mae if you can establish that more than seven years has elapsed since you defaulted. Oklahoma may still be able to report you as delinquent for seven years since it paid Sallie Mae.

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Answered on 7/24/01, 12:41 pm


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