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Disputing A Credit Report Error Regarding A Student Loan: What Do You Need to Do?

You examine your credit report as you prepare to apply for a car loan, student loan or other loan to ensure everything is in good working order. What gives, though, is that the student loan you paid off last year is still shown as unpaid? If you live in Georgia and want to apply for a loan from Georgia Champion but you have this problem, you shouldn’t worry because you still can apply for it.

Credit report inaccuracies are unfortunately widespread. According to a Consumer Reports survey, 34% of people discovered at least one inaccuracy on their credit reports. Here’s how to dispute student loans on your credit record if you discover an error relating to your college debt.

Common Errors in Student Loan Credit Reports

Student loans can be misreported to credit bureaus. These are some of the most typical problems you could uncover when analyzing your credit report:

Loan accounts that have been closed but still listed as open

Your credit report may still report a debt you’ve already paid off as open or unpaid. This problem can occur for various reasons, but the most prevalent cause is a reporting delay. Loan servicers can take several months to report your payments, so there may be a gap between when you pay off the loan and when your credit report is updated.

Loans declared as delinquent

It’s crucial to keep an eye on your credit if you’re in forbearance or deferment on your debts. 

Accounts may be incorrectly recorded as delinquent when you receive the loan servicer’s permission to halt payments. Your servicer’s error is the most common cause of loan status errors. They most likely misread your payment status and mistakenly filed the delinquency.

Loans Listed Incorrectly Under Your Name

Loans reported under your name can sometimes result from a simple mistake—perhaps someone with a similar name took out a loan, and the information got jumbled up. If identity thieves use your personal details to register new accounts in your name, it can also happen. 

You can challenge student loans that you did not take out in any circumstance.

Loans are listed more than once

Your student loan may appear on your credit record many times. When a single obligation appears on multiple accounts, it can greatly influence your debt-to-income (DTI) ratio and your ability to get other types of credit. This issue might arise due to clerical errors, but it can also occur if your loan is moved to a new servicer. There may be some overlap when a loan is listed in two places before being updated.

Loans that have been forgiven but are nonetheless listed as delinquent or in default

You can dispute student loans if you were eligible for debt forgiveness or discharge—for example, if you were eligible for federal total and permanent disability discharge, your loans are still recorded as active on your credit report. Due to errors on the part of the loan servicer, forgiven loans may be incorrectly listed.

How to Correct a Credit Report Error Regarding Student Loans

Finding mistakes on your credit report can be alarming, but you can file a dispute to get them removed. Because student loans might impact your credit report and score, it’s critical to take steps to improve your credit. 

Examine your credit reports first.

AnnualCreditReport.com allows you to check your credit reports from each credit agency for free once a year. Due to the Covid epidemic, you can obtain free weekly until April 20, 2022. 

Look for the following items on your credit report:

Information about you. 

Ensure your personal information is up to date, including your name, address, birth date, and Social Security number (SSN).


Check to determine if you have any accounts in your name that aren’t yours. 

You can come upon school loans you didn’t take out or credit cards you didn’t apply for.


Any recent credit queries will be listed on your credit report. 

Recent queries may suggest that your information has been hacked and someone else is submitting loan applications in your name if you haven’t applied for new credit in a while.

Gather information

If you discover any errors on your credit report related to student loans, gather the documentation you’ll need to dispute the errors. The specific information you should provide will vary depending on the error you’re disputing, but you may require copies of the following documents:

  • An erroneous credit report
  • Proof of payments, forgiveness, forbearance requests, or other supporting documents 
  • Contact information for the lenders you’re disputing 
  • Loan or bank statements 
  • Payoff confirmation from your student loan servicer 
  • Proof of payments, forgiveness, forbearance requests, or other supporting documents

Send a letter

Then, write a letter to the loan servicer who sent the credit bureaus erroneous information. 

The letter should include:

  • The account you’re contesting.
  • Your reasoning for believing the report is incorrect.
  • Any supporting documents you have.
  • A request to have the charge removed or corrected. 

You can use the Federal Trade Commission’s (FTC) sample letter to help you create your own.

Get in touch with your loan servicers

Send a certified letter or use your online account to send your dispute letter to your loan servicer or lender. Contact the lender’s customer care if you’re unsure where to submit it.