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Student Loan Listed as “Government Claim”

Dear Experian,

On one of my student loan accounts this was posted: "Government Claim/Insurance Claim." What does that mean?

- RSC

Dear RSC,

A student loan with a status of "government claim/insurance claim" indicates that you defaulted on the loan and the lender filed a claim with the government to recover the amount due. Federal student loans are guaranteed, or insured, by the government. That status means the account was paid and closed, but that the government paid off the loan and not you.

It doesn't mean, however, that you do not still owe the debt. Typically, the government will open a new account for the student loan debt. The new account will likely also appear on your credit report.

The Impact of a Government Claim

A government claim indicates that you were seriously past due and will likely have a significant impact on your credit history. It will remain on your credit report for seven years from the original delinquency date. The original delinquency date is the date the account first became delinquent and was not brought current.

Contact Your Lender If You Are Unable to Make Payments

Although you may make just one payment each month, student loans are typically reported as a separate account for each semester that you attended school. Therefore, missing even one student loan payment will likely result in multiple delinquencies on your credit report.

Federal student loans often offer options for those who are having difficulty making payments. If you feel you may not be able to make your full payment on time, you should contact your lender as soon as possible to discuss your options, before your payment becomes past due.

Thanks for asking.
Jennifer White, Consumer Education Specialist

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