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Disputes and Student Loans

If you have student loans, you’ll see them listed on your credit report. Don’t worry if you see more student loan accounts than you think you have.

  • Each time your school provides financial aid, a new loan may be created
  • New loans are created on your report when you refinance or consolidate
  • Paying off student loans is a huge achievement; your credit score may dip but you can usually overcome it quickly

What do I do if I think a student loan is inaccurate on my report?

  1. Take time to review any information you have or letters from your loan provider.
  2. New loans may appear on your credit report each time your school provides financial aid. This depends on how funds are dispersed and may happen each semester. If you’re still in school, you can talk to a financial aid officer if you have questions.
  3. If you’ve reviewed everything and still think something is inaccurate on your credit report, submit a dispute online with TransUnion.

I paid off a balance, so why is the account still showing a balance on my credit report?

Credit reports update when lenders provide new information to the credit reporting agencies. You may not see changes reflected immediately in your report. Some lenders send updates more frequently than others, but it usually happens once a month. Learn more about how to read your credit report.

Why did my credit score dip after I paid off my student loan?

It can feel counterintuitive to see your score drop after paying off a student loan.

This can happen because paying off a loan reduces the amount of active credit you have on file. Typically, a mix of active credit accounts is seen favorably. When a student loan falls off your credit report, you lose that information which can temporarily lower your score.

Paying your student loan in a timely fashion helps you build good credit, and paying it off entirely is an achievement that should be celebrated. Your credit score is only one measure of your financial health, and you can usually overcome these small dips quickly.

What You Need to Know:

The credit scores provided are based on the VantageScore® 3.0 model.  Lenders use a variety of credit scores and are likely to use a credit score different from VantageScore® 3.0 to assess your creditworthiness.

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