Your credit score affects your ability to receive credit for years.
A charge off occurs when a creditor decides your account is too far in default without payment and closes your ability to get further credit from them. You are still responsible for paying the full amount. Since most student loans are a set amount, this does not hurt your ability to continue receiving credit from that lender, but it is often reported to a collections agency and can negatively affect your credit report and credit score. The best approach is to try to have it removed from your credit report as soon as possible.
Instructions
1. Determine the details of the charge off: the date, the current amount due, the number of days the loan is or was late, and any late fees accrued. Having all of the accurate information will help you make a successful claim. It will be easier to remove if the charge off was in error--for example if the account was not yours, someone else was making payments, or you made a payment but their accounts are in error.
2. List the reasons the student loan company should remove the charge off or recall it from a collections agency. Dealing directly with the student loan company is the best way to get it removed from your credit report. If you had a medical or other emergency, or financial hardship, include those details. If there are errors in their report, include as many details and as much proof as you can.
3. Call the student loan business office and go through your talking points. Remain calm and friendly even if it feels like a frustrating situation--people respond better to a friendly tone. If the person on the phone says they can't do anything, ask to speak to a supervisor. Make it clear that you're dedicated to making payments on the loan and that it's important for you to keep your accounts in good standing. They may ask for documentation about previous hardship or events.
4. Mail in any documents the student loan company requires, along with a typed letter with the reasons the charge off should be retracted from your credit report. Sign and date the letter before you send it.
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