Student loan payments for federal loans are suspended until September, 2020; the CARES Act, which suspended payments, also required that student loan companies treat the loans as though they were still being paid. Some loan servicers may not be complying with the law, and that could damage the borrower’s credit.
Recently, Great Lakes Educational Loan Services was found to be reporting the suspended loans as in “deferment,” rather than reporting them as being current and on-time. For some borrowers, this hurt their credit score.
Student loan borrowers can review a free copy of their credit report weekly through Annualcreditreport.com; all three major reporting agencies are allowing free weekly online reports through April 2021.
If you find a problem on your credit report, the law allows you to dispute it, and if the reporting company does not correct the area, you may have a right to sue to correct the problem and for any damages caused by the error.
If you believe you’ve been the victim of mishandling of your student loan, or other debt, contact Lawton & Cates to speak to a consumer protection lawyer today.