I recently consolidated οld federal student loans. Thе consolidation іѕ official аnd completed tommorrow. Hοw long dοеѕ іt take before thе default status comes οff уουr financial aid record аnd dοеѕ thе consolidation company remove іt οr dοеѕ thе loan guaranteur thаt thе consolidation company bουght іt frοm?
Tags: after, consolidation, Default, removed, Status
Once the consolidation company pays the lender, the lender will then send a letter to you stating that they received the money and that you are no longer in default status. But all that depends on how fast each company moves. So it can take up to two or four weeks. And it will be the Loan Guarantor that will remove the default status.
It is actually two companies that will remove the default status, the Default Resolution Group and the original company you defaulted through. Honestly this can take forever, I actually use to do default credit clearing for Direct Loans, they can take up to three months to remove it from your credit, and the default company WILL take forever. A little trick to get this off your credit ASAP is to dispute the default status from both the companies through one of the credit bureaus. Direct Loans and the Default company have only 30 days (usually done within a week or so) to remove the item from your credit with all three credit bureaus when it is disputed directly though at least of the credit bureaus. If your student loan was not with Direct Loans I would still try this anyway, it is no fail.