How to Write a Student Loan Credit Dispute Letter
Nearly 80 million Americans have used student loans to pay for all or some of their post-secondary education. Of that 80 million, nearly 45 million are still trying to pay off their student loans. If you happen to be one of the 45 million, you may find yourself disputing information that appears on your credit reporting regarding your loan.
If you haven't checked your credit report recently for student loan inaccuracies, now is an excellent time to do so. Changes in student loan repayment processes that took effect in 2020 have resulted in an increase in inaccurate data appearing on credit reports. If you disagree with student loan information, you will need to send a to have the information removed or corrected.
Why Dispute Student Loan Errors?
Many people assume their credit reports are accurate; however, a recent survey found that 34% of Americans found errors on their credit reports. These errors can lower credit scores and impact your chances of getting a loan or credit card. Poor credit scores usually mean higher interest rates that increase monthly payments on car loans, mortgages, and credit cards.
Credit report disputes take time, but ignoring errors can have long-term consequences when it comes to your financial health. Because credit bureaus charge for copies of credit reports, most people did not check their reports. Today, everyone can request a free copy of their credit report once a year, so there is no excuse for not checking it for errors.
What is a Student Loan Credit Dispute Letter?
The Fair Credit Reporting Act (FCRA) requires consumer reporting agencies to use accurate information in their reporting. If you find an error, you have the right to dispute the data. For example, you can dispute the following information regarding your student loan:
- Incorrect loan balance
- Incorrect loan status
- Misinformation regarding default status
- Errors in garnishment
To file a dispute, you must send a to the credit bureaus.
How to Dispute Student Loan Errors on Your Credit Report
To file a dispute, you will need the following information:
|This should be the name on the student loan.
|This should be your current address.
|Student loan account number
|The account number assigned to your loan.
|Student loan originator
|The company that gave you the loan.
|Student loan servicer
|The company that accepts your payments.
|The list of disputed items can include incorrect account numbers or inaccurate payment history.
|Explanation of dispute
|Briefly discuss the discrepancies.
|Include receipts, proof of payment, or statements that support your claim.
Once you have drafted your dispute letter, you will need to send it to your loan originator and servicer plus the three credit bureaus -- TransUnion, Experian, and Equifax. By law, the credit bureaus must resolve the dispute within 30 days. If they cannot, the disputed items should be removed from the report.
Yes, filing a dispute is time-consuming, unless you use DoNotPay's online service.
How to Dispute Student Loan Errors with DoNotPay
To remove student loan errors from your credit report, follow DoNotPay's three steps.
- Search Clean Credit Report on DoNotPay.
- Prepare a recent copy of your credit report that you can use as reference.
- Let us guide you through the four potential options:
- If you've already paid off your debt, we'll help you file a Goodwill Removal Request to get it removed.
- If you notice any errors in your report (we have a list of common errors you can use!), we'll help you file a credit dispute to the creditor or major credit bureaus.
- If there are no errors, we'll check if you're still eligible to file a debt validation request. If they can't validate your debt, they're required to remove it from your report and they can't collect it!
- Lastly, if none of the above options work, we'll help you file a pay-to-delete negotiation letter. You can customize the amount you are willing to pay in exchange for getting the item removed.
You can also check out other credit services such as:
- How to improve your credit score
- How to dispute a credit report
- How to request a debt validation letter
- How to process a credit dispute letter
- How to remove collections from your credit report
- How to remove late payments from your credit report
- How to remove credit score inquiries from your credit report
DoNotPay can help you take control of your credit reports with a few clicks of a button.
Why Use DoNotPay?
DoNotPay helps consumers address errors, improve credit scores, and resolve a myriad of life's challenges through its online service that is:
- Safe. DoNotPay uses online security software to protect your personally identifiable information.
- Convenient. You can improve your financial health from the comfort of your home
- Fast. You can complete DoNotPay's process in minutes, leaving you more time for the things you want to do