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  • Can I remove student loans from my credit?

  • Can I remove student loans from my credit?

    February 27, 2018 | Blog
  • DKR Group Financial is a renowned coaching institution, which was launched to assist the individuals in providing credit and funding to set-up their business establishments. They offer constant support and guidance in accomplishing future goals and fulfilling your dreams. One of the major highlights of this company is that the discerning clients can get acquainted with various types of credit. It is very helpful in tracking the current position of the business.

    What is the meant by the term ‘Credit Report’?

    A Credit report is a detailed summary of a person’s credit history. The primary role of the Credit bureaus is to gather vital information and prepare credit reports based on the collected raw data. The prospective lenders utilize the reports in order to gauge the creditworthiness of a loan applicant. Equifax, Experian, and Trans Union are some of the major credit reporting bureaus located in the United States of America.

    Student Loans

    There are a plethora of student loans, which are administered by several rules and regulations. Federal student loans, private loans, and state loans are just to name a few. Majority of the student loans does not contain a statute of limitations (laws which are sanctioned by the legislative bodies) whereas few federal loans include repayment plans.

    About millions of people residing in the United States of America are struggling to tackle the issue with respect to student loans and ultimately removing it from the credit report. Majority of the student loans belong to categories ‘Private’ and ‘Federal’. It is quite easy to remove Private student loans from the credit when compared to federal. However, the Federal Government sponsors one of them while the second one is financed by other reliable sources.

    Yes, it is possible to remove student loans from the credit report even though it is a bit complicated process. First, an individual may contact the concerned lender directly. However, supporting documents should be presented before the lender mentioning reasons for removing the late payments from the credit report. Keep in mind that you need to take additional copies of each report. Another alternative solution is to file a complaint with the concerned credit-reporting agency or against the lender. As soon as the complaint is registered, further steps will be initiated by the agency within a period of about five to seven days.

    Does student loan have a negative impact on the credit report?

    If an individual has a private student loan, it will definitely hurt the credit report. One of the best ways to get rid of student loans is to pay the loan amount in full. Another best option is loan rehabilitation where you are required to consult the service provider or lender to create a plan to execute the payments in smaller denominations. By doing so, you can easily escape from the clutches of default payments in the future. Loan rehabilitation allows you to pay payments for a fixed period of time as per rules mentioned by a credit agency.