Student Loans and Disputes

If you have student loans, they will appear on your credit report. It’s normal to see multiple student loan accounts listed, even if it seems like more than you expected.

  • Whenever your school disburses financial aid, a new loan may appear on your credit report.
  • Refinancing or consolidating loans can also result in new loans being reported.
  • Paying off student loans is a significant milestone; while it might temporarily lower your credit score, you can typically recover quickly.
 

What Do I Do If I Think a Student Loan is Inaccurate On My Report?

  1. Review any correspondence or details from your loan provider carefully.

  2. New loans may appear on your credit report each time your school disburses financial aid, which could occur each semester. If you’re still in school and have questions, contact your financial aid office.

  3. If you believe there’s an error on your credit report after reviewing all information, you can file a dispute online with TransUnion.

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I Paid Off a Balance, So Why is The Account Still Showing a Balance On My Rredit Report?

Credit reports are updated when lenders submit new data to credit reporting agencies, with changes typically reflected monthly, though timing varies by lender. Learn more about understanding your credit report.

Why Did My Credit Score Dip After I Paid Off My Student Loan?

It may seem surprising when your credit score drops after paying off a student loan. This can occur because closing a loan reduces your active credit accounts, and a diverse mix of active credit is generally viewed positively. When a student loan is paid off and removed from your credit report, this change can temporarily lower your score.

Consistently paying your student loan on time builds strong credit, and fully paying it off is a significant accomplishment worth celebrating. Your credit score is just one aspect of your financial health, and these temporary dips are typically quick to recover from.

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