How to File a Credit Dispute of Student Loan Transfers

If you have a student loan, your current loan holder is required to notify you before selling the loan. In some cases, you may decide to transfer the loan balance from one company to another offering a lower interest rate. Regardless of the reason for the change in ownership, it is important that your student loan information is correct on your credit report. Any discrepancies require filing a dispute to have them corrected.

Instructions

1

Obtain a copy of your credit report. The three major credit bureaus include Equifax, Experian and Trans Union. If a creditor denies you for credit, the bureau must send you a copy of your credit report if requested. According to the Federal Trade Commission, consumers are entitled to a free copy of their credit report each year from the three bureaus. Visit annualcreditreport.com to order yours.

2

Review your credit report. If a closed account is showing with the original student loan holder, check the balance. Since you no longer owe that company, it should show a zero balance. A closed account with a timely payment history can have a positive impact on your credit score. Negative account information can remain on your credit report for seven years. If the loan is more than seven years old with a history of reported late payments or an outstanding balance, proceed to dispute the account.

3

Gather documents pertaining to your student loans. Prepare to supply a copy of your original loan paperwork, transfer letter, payment records and information about the new lender.

4

File a dispute with each credit bureau. While you can file disputes online, the FTC encourages consumers to file written disputes for their own protection. Write a letter to each bureau identifying the student loan you want to dispute and the reason you feel there is an error. Your letter should include personal information, such as your complete name and address along with copies of your supporting documentation.

5

Wait for a response. The Fair Credit Reporting Act allows credit bureaus 30 days to investigate disputes. If the information is not verified within the given time period, the credit bureau is required to delete the information. If credit bureaus do not have proper records on closed accounts or the previous loan company chooses not to respond, they remove the old account in question from your credit file.