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Negatives on Credit Report from Student Loans

I have negatives on my credit report (CR) from two types of debt. Nine of the negatives are from student loans that I thought were in deferment but where not. Once I found out I made a payment to bring the loans current and now currently in deferment.

The other negative is from cancellation of credit card debt. All the student loan negatives happen in Aug 2009. The cancellation of debt is from Jan. 2010. Is there any way to remove the negatives from the CR? Or am I stuck with negatives on my CR for 7 years or more?


Dear Ian,

The good news is that once you make 12 on-time regular payments on your student loans the negative information should be removed from your credit report. You should verify this with your loan servicer.

I’m not aware of any provision that allows that to happen while a loan is deferred.

The canceled credit card debt will appear on your report for up to 7.5 years from the date it was first reported negative. Generally items like this are removed at the seven year mark.

If you’re not doing it, you should be currently focusing on rebuilding your credit to bring your score up. If you do that you can have good credit again. See this guide.

Please post your responses and follow-up messages to me on this in the comments section below.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • I have direct loans, and also became delinquint when i mistakenly thought i was in deferment. i called them to enquire about loan rehabilitation. they told me that loan rehabilitation is only for people who were in default, not simply delinquint. rehabbing the loan removes the record of the default, but not the delinquincy leading up to it. in effect, loan rehabbing does next to  nothing for your credit, it is only really useful if you are trying to qualify for new loans. i know some people have had them remove all negatives after completing a rehab, which kind of sucks…if you stop paying for 2 years your credit could be better than someone who missd 3 months.

    • It is correct that delinquencies reported will not be removed but the fact you are currently not in default is a positive and will help your credit score.

      Rehabilitating your loan(s) removes the default status of previously defaulted loans at completion of the process. National credit bureaus are notified when the loan is no longer considered in a default status.

      The 9 voluntary on time payments you make while rehabilitating your loans will be subtracted from the maximum repayment term of your loan.

      After the loan has been rehabilitated, you regain the balance of all benefits of the Title IV loan program, including any remaining eligibility for deferment or forbearance, from the date of the rehabilitation.

      You regain the flexibility you need to choose a loan repayment plan that works best for you. Repayment plans available to other borrowers with the same loan type may be available to you, depending on your qualifying status.

      Once you have completed your rehabilitation plan, and you keep your loans in good standing, you will not again be subject to administrative wage garnishment, income tax refund offset, or other penalties that can be imposed on defaulted loans.

  • The student loan servicer says that they will not remove the old defaulted loans even if I have been back in school after doing the rehabilitation program. What can I do to get these deleted and removed from my collection accounts on my credit report?


  • Thank you Steve for answering my question. The loan provide state they will not remove any negative marks from my credit report.  Do they get removed at 7.5 years, too? Or should I dispute the negatives?  

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