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Transferred and Closed Student Loan History Still Affects Credit Scores

Dear Experian,

I recently filed a dispute to get the status of my federal student loans changed. They were reported as delinquent because of missed payments. However there was a forbearance put on the account, and after the dispute, the status was updated to transferred/closed. Should my score improve with this update?


Dear CMW,

A status of “transferred/closed” on your student loan account indicates that the debt was transferred or sold to another lender. If so, the original account will no longer show a balance because you no longer owe a debt to that company.

However, your credit report will still show the history of the account. Any late payments made before it was transferred or granted forbearance will remain on the report for up to seven years from the date the debt first became delinquent. While the old accounts will no longer show a balance, the payment history will still affect your credit scores.

New account entries will show the debts under the lender to whom the account was transferred along with the balance you owe. If these accounts are currently in forbearance or deferment, the status should reflect that fact as well.

Thanks for asking.
The “Ask Experian” team

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