Sallie Mae Mistakenly Reports Up to 1 Million Borrowers Delinquent

Student Loan Girl — Thu, 15 May 2008 00:42:00 GMT

As many as 1 million Sallie Mae customers may be experiencing problems with their credit scores after the student loan company erroneously reported some of its borrowers’ student loan accounts as delinquent.

Sallie Mae’s customers on graduated or extended repayment plans were unintentionally reported as borrowers who made only partial payments, which led Equifax, one of the three national credit reporting agencies, to label the accounts as past due.

Due to the mix-up, some borrowers found that their credit scores had dropped by 100 points or more, according to an article on Bankrate.com, (“Sallie Mae Error Causes Credit Score Plummet,” May 14, 2008).

A Sallie Mae spokesman said the error had affected less than 10 percent of its 10 million borrowers. The student loan company is working with Equifax to correct the problem and is supplying credit reference letters to any Sallie Mae customers who need help rectifying their credit score or help proving to a potential lender that Sallie Mae was responsible for the error.

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Sallie Mae Mistakenly Reports Up to 1 Million Borrowers Delinquent