The Complete Guide To Disputing Student Loans on Your Credit Report

Can You Dispute Student Loan Errors on Your Credit Report?

Yes. Under the Fair Credit Reporting Act (FCRA), credit reporting agencies must report accurate information. 

🔎 If you notice errors or inaccurate information related to your student loans on your credit report, you have the right to dispute the information. 

To dispute an error, you’ll need to start the process by contacting the credit bureau and including any documents that support your claim. Once the bureau gets your dispute, it is required to investigate and respond within a set time. 

Errors To Watch Out For

Errors tend to fall into three main categories:

• Personal information or identity data 

• Account status or balance 

• Data input 

We cover each in detail below.

👀 Federal student loan repayment requirements have changed a lot in recent years, so it’s crucial to double-check that your information is being reported correctly.

Even small errors can hurt your credit, so it’s worth taking a look.

Personal Information and Identity Data Errors

When you check your credit reports, verify all your personal information, including your full name (and its spelling), phone number, address, and Social Security number.

Sometimes people with similar or identical names find that someone else’s information is wrongly showing up on their credit report. 

Account Status or Balance Errors

Incorrect account details on your credit report can seriously hurt your credit score, making it harder to qualify for loans, refinance existing debt, or get a good interest rate. That’s why it’s important to look closely at each account when reviewing your credit report.

Watch out for these common account reporting mistakes:

• Closed accounts still listed as open

• Paid-off loans reported as unpaid

• Incorrect account ownership (like being listed as the owner when you're only an authorized user)

• Late or delinquent payments reported when you’ve paid on time

• Wrong dates for account activity, including opening, closing, or late payments

• Duplicate accounts (accounts listed more than once)

• Incorrect loan amounts, current balances, or payment amounts

• Wrong credit limits for credit cards or lines of credit

Spotting and correcting these errors can help protect your credit and save you money in the long run.

Data Input Errors

Some errors may be simple data management errors. If you previously disputed incorrect information and it’s back on your credit report, you need to follow up on your dispute or make a new one. It's good to check your reports for errors and check them again later to ensure the errors have been resolved.

Also, make sure that any negative information that is at least seven years old (excluding Chapter 7 bankruptcies) has dropped off your credit report.

How To Dispute Student Loan Errors on Your Credit Report

To dispute errors, you’ll need to first compare information on your credit report to your own records. Then you can report the errors to your lender and each major credit bureau. 

Step 1: Get Your Free Credit Report & Gather Financial Documents

First, get a free copy of your credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion. 

💻 The easiest way to do this is to go to AnnualCreditReport.com, which is the official website approved by the government to get your free credit report. You can pull a report from each of the three credit bureaus.

To get your federal student loan information, run a report from the National Student Loan Database System (NSLDS). 

💡 The NSLDS is run by StudentAid.gov, and it’s free to get your student loan report. 

You may also want to gather financial documents like bank statements, credit card statements, and any paperwork or correspondence you have from lenders or loan servicers regarding your monthly payment, repayment plan, loan forgiveness, loan consolidation, etc. These will help you confirm that the information on your credit report is correct.

Step 2: Review Your Credit Report

🔎 Once you have your free credit report, look for errors. Compare the information on the credit report to the financial documents you’ve gathered. 

If you find federal student loan errors on your credit report, look at your NSLDS report to see who the loan holder and servicer are (they may be the same company). For private loans, look at a recent statement or call your provider or servicer directly to gather information about your student loan and payments. 

If you find an error on your NSLDS report, you will need to follow a separate process to dispute it. Read more about this in the section below titled How To Dispute Student Loan Errors With Your Loan Provider. 

If You Find an Error in Your Credit Report

Before you report an error, gather as much information as possible. The more information you have, the easier the dispute process will be.

Have the following information ready to report in your dispute:

• Your name and address

• The account number of the disputed student loan 

• The student loan holder (where the loan originated)

• The student loan servicer (the company taking payments)

• The type of information about your student loan that you’re disputing (e.g., payment history, account details, account status)

• A short explanation of the disputed information

• Proof of errors

Make sure you have copies of receipts, court orders, bills, proof of disability, or other types of proof to back up your claim. Compare your information with that of your loan holder and servicer. You may have to contact your lender to get information about the credit report entry unless your payment history or complete account information is available online.

The Consumer and Financial Protection Bureau (CFPB) monitors and fields complaints about credit reporting agencies. You can file a complaint with the CFPB if you encounter any issues during this process.

Step 3: Write a Dispute Letter

Many experts advise writing a dispute letter rather than calling when disputing your student loans or other information on your credit history. 

✍️ Having a written record makes it easier to keep track of the dispute process. If you have a federal student loan, first follow the dispute steps at StudentAid.gov. If those don’t work, contact the Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education. 

The three major credit bureaus have an online dispute resolution process. 

🗓️ They have 30 days to resolve the issue or remove it from your report according to the Fair Credit Reporting Act (FCRA). After a dispute investigation is complete, the agencies have five days to send you the investigation results. 

To learn more about the general dispute process, read our article: Disputing Credit Report Errors: A Start-to-Finish Guide.

Step 4: Review the Dispute Results or Follow Up on the Dispute

Within 30 days of submitting your dispute, you should receive correspondence from the agency you filed your dispute with, whether they agree with your dispute or not. Review the dispute result to see what action the agency has taken. 

If you don’t hear back from the credit bureau within 30 days or you disagree with its reply, consider filing a complaint with the CFPB. You can also follow up directly with the agency.

Can I Get Defaulted Student Loans Removed From My Credit Report?

It depends. If you have a defaulted student loan and haven’t rehabilitated your loan, contacted the loan servicer to work out an agreement, or otherwise repaid the debt, you can’t have the loan or its default status removed from your credit report. In other words: You can’t remove information from your credit report if it’s correct.

That said, negative information ages off your credit report eventually. Most negative entries will drop off your credit report after seven years. Just keep in mind that even though negative information eventually disappears from your credit report, the debt itself doesn’t go away. 

Why You Should Dispute Student Loan Reporting Errors

Your credit report and credit score affect most areas of your financial life, including your eligibility for future loans or credit cards and the interest rates you’re offered on new credit. 

The impact of your credit score expands beyond the financial world though. Employers and landlords may check your credit history if they’re considering you for a job or housing. Managing your student loans responsibly is a great way to help build your credit.

How To Dispute Student Loan Errors With Your Loan Provider

When you look at your student loan financial documents, you may see errors on your student loan accounts. Perhaps your student loan payment history is incorrect or there are other errors related to the amount of student loan debt you owe. 

If you need to dispute something about your student loans with the servicer itself, you must contact your student loan holder and provide proof of the errors you’re claiming. If you have questions about your loan balance, status, or consequences related to defaulting on a loan, check out the federal student aid website to get more information. 

If you have a private student loan, you’ll have to call your loan holder or loan servicing agency to dispute any errors related to your account.

Here are some common student loan reporting errors:

• Incorrect account balance on your student loan

• Loan incorrectly reported as in default

• Identity theft or fraud

• Incorrect facts used to deny a student loan discharge or student loan forgiveness

• Tax and wage garnishment errors

Let’s Summarize. . .

It’s tough to take the time to manage student loan disputes on your credit report, but the work could ultimately result in a positive payoff. Incorrect information will lower your credit score and hurt your chances for future loans, credit cards, and even housing and job opportunities. Fixing the error may improve your credit score and your chances of improving your finances, education, and quality of life. Good credit opens the door to opportunity. Investing time to dispute errors and to make things right is time well spent.