Defaulted on student loan over 7 years ago
Posted by Bright_Drive2877@reddit | studentloandefaulters | View on Reddit | 24 comments
I defaulted on my student loans over 7 years ago and it no longer appears on my credit report . No collection accounts are being reported and I currently have good credit.
However, I'm considering becoming a Law Enforcement officer in California and a background check is required. If I was to restart payment, the default status would reappear and negatively affect my credit. Not really sure how to proceed. Is there anyway a background investigator would be able to look into this? If it's wipe off my credit report, are they still able to see it?
No-Bat3062@reddit
Well plenty of cops are part of active gangs so you might be fine with a little loan issue.
FickleMickleDane@reddit
Most cringe comment here.
chris_carbone@reddit
apologies, it will not allow me to post this as a new question:
Without getting too in the weeds, I have never been able to pay my student loans- I went to undergrad, then grad school- After graduating things hit the fan immediately (fam emergency, med bills, etc) and long story short I have literally never made a loan payment EVER. I graduated in 2013 and have literally never made a single payment- my credit was obviously in the toilet for many years due to about a dozen defaulted loans ($300K+).
I have not and will not ever be able to pay this and have been waiting for it to fall off my credit. Due to being good for about 5 years now my I got my credit back up to 690ish. and have been waiting for those defaults to fall off.
Today, I got a message from my bank telling me that my credit score dropped 110 points, overnight. I checked and it is indeed true. I'm now at 580. This is apparently due to 12 delinquent accts moving to "derogatory accts" -
Can anyone explain why over a decade since being sent to collections, this is happening, seemingly ALL OVER AGAIN now?
Samus1611@reddit
Were they private or federal student loans?
A313-Isoke@reddit
When you say good credit? Do you mean like over 700? Do you have good credit cards? Do you get good interest rates on your car loan and mortgage?
Asking for a friend! đź«
blastoffboy@reddit
I haven’t paid my loans in many years, almost 10, and I had over 720 credit, 2 credit cards, a car loan, and bought a house
Bright_Drive2877@reddit (OP)
A313-Isoke@reddit
Okay, hmm, I wonder if you'd qualify for a car or a mortgage (there will probably be deals from your union membership). It might be worth remedying because there's so many scoring models out there.
h20bender@reddit
Federal or Private will be a big factor. If Private, let them be u are set. If Federal, they will be coming up again, maybe not on the background check, but Treasury will seize tax refunds and other Federal payments. Federal loans do not go away, there is not SOL or "tricks" there, just a matter of time. U need to identify the type of loans to get accurate info.
Altruistic_Yellow387@reddit
Do not restart payments
Bright_Drive2877@reddit (OP)
I don't plan to but could you elaborate? If I did, it would go back onto my credit report negatively affecting me right?
Altruistic_Yellow387@reddit
Right, and would restart the clock on the statue of limitations for when they can sue you
Here4TheShinyThings@reddit
I was only a 911 dispatcher but we had the same background checks as the officers. They didn’t care about my unpaid student loans. They cared about a pattern of unpaid bills and extreme spending that would make you susceptible to bribery or gambling debts. I literally had nothing else on my credit report so it was something in the 500s.
The most important thing when applying for these types of jobs is honesty. They’ll forgive nearly anything if it’s in the past and if you’re honest. We had former gang members as officers and we had the highest standards in our region.
Bright_Drive2877@reddit (OP)
I plan on disclosing it and explaining if they ask for details
Here4TheShinyThings@reddit
You should be fine then, don’t worry. I tried to explain my situation and the investigator interrupted me and was like “we don’t care. Student loans aren’t what we’re looking for.”
Good luck!
Stavy612@reddit
If there’s a poly that will trip you up.
justbeaunicorn@reddit
Why would you need to restart the payment? It’s not on your credit report.
Bright_Drive2877@reddit (OP)
That's what I'm thinking but the police background check asks if I've ever defaulted on a loan. I believe in California, employers are only permitted to conduct a credit check up to the past 7 years
But_like_whytho@reddit
If it’s over 7yrs ago, then it shouldn’t come up on the credit check.
Temperature-Material@reddit
You defaulted. Starting payment now does not change that fact.
Is there a time limit on the question? i.e. In the past 5 years, have you ever defaulted? Then you can honestly answer no.
If there is no time limit on the question, you have to say "Yes - I defaulted". If you lie, they will find out. Just because it is not visible on your credit report -- which is used to obtain credit -- doesn't mean it doesn't exist. It falls off after 7 years because banks and other creditors are prohibited from using that data to make a credit decision.
Government employers have significant leeway to conduct background checks as they please. For example, private employers are legally prohibited from using lie detector exams to make employment decisions. That law exempts government agencies.
Answer truthfully.
networktech916@reddit
It only comes back to haunt you if you are applying for a Federal job, or when you retire (at retirement bam 15% garnishment)
If you restart payments that will restart the clock
Additional-Ad-9088@reddit
The debt was disputed for so long that the managing company allowed the SOL to expire thereby resolving the issues.
russ8825@reddit
If its a private loan, check the statute of limitations. The debt could be uncollectible.
Usukidoll@reddit
Sorry I didn't read the flair... e----e
You may need to consolidate or rehabilitate the loans to get it back to current status .