Student loans reported as “claim filed with government”


Dear Experian,

My student loans were consolidated into a new loan. My old student loans now state “closed/paid collection” and, “Claim filed with government for insured portion of balance on loan.” Does this negatively impact my credit scores? I see “potential negative account” on all of the old loans. Can I get these old student loans removed to improve my credit scores?



Dear JNN,

Although the original accounts are now closed, they are still a part of your credit history. Failing to repay any debt is always considered negative.

When a borrower defaults on student loans that are guaranteed by the federal government, the creditor can file a claim with the government to recover the amount of the loan. However, the borrower still owes the debt.

The government can consolidate the accounts into a new loan for collection of the debt. The status “claim filed with government” indicates that has taken place.

The original student loan accounts will remain on your report for seven years from the initial missed payment that led to the claim being filed with the government.

Thanks for asking.

The “Ask Experian” team

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