How to Remove Student Loans From Your Credit Report

Student loans might allow you to get a college education and eventually land a high-paying job. If you repay the debt as promised, that can help you build a positive credit history. The debt should eventually drop off your credit profile, but in some situations, you may need to take action to remove student loans from your credit report. Here’s how.

Can you remove student loans from your credit report?

Yes, but you normally don’t need to do anything to make this happen. Once you’ve repaid your loan, the account will be marked as closed on your credit report and remain there for up to 10 years, according to TransUnion.¹ (Be aware that negative credit events, like a missed payment, can stay on your report for up to seven years.

When student loans can be removed from your credit report

If the loan is indeed yours, and the information is correct, the only way to have it removed from your credit report is to pay off the balance. However, you might be able to have it removed sooner if any of the following situations apply.

The account contains inaccurate information

Credit report errors can happen. When reviewing your report, you may come across a student loan that:

• Doesn’t belong to you
• Has an incorrect balance
• Has a wrong payment status
• Appears twice

You can dispute credit report errors with each of the three major credit bureaus (Experian, Equifax and TransUnion).

The loan has been paid off and enough time has passed

If it’s been more than 10 years since your account was paid off and closed, and it’s still appearing on your credit report, you can contact the credit bureaus to have it removed. Again, delinquent accounts should be removed after seven years.

The loan was discharged in bankruptcy

If you’ve filed for bankruptcy, you might be able to discharge federal student loan debt by proving to the bankruptcy court that repaying the loan would cause undue hardship.² Private student loans may also be discharged if it’s a qualified education loan and you can prove undue hardship.

Discharged student loans should be listed on your credit report as included in bankruptcy, and the amount due should be zero. The account will then remain on your report for seven years from the original delinquency date (or seven years from the bankruptcy date if the account was never delinquent), according to Experian.

The statute of limitations has expired

The statute of limitations is the how much time the creditor has to file a lawsuit against you to recover payment. Once this time period expires, creditors can still take legal action, but they cannot win a court judgment if you respond to the lawsuit and prove the debt is past the statute of limitations. Just be aware that making a partial payment, enrolling in a repayment plan, or acknowledging the debt in writing could restart the timeline.

Federal student loans have no statute of limitations. For private student loans, it varies by state but often ranges anywhere from three to 15 years. But even if that time passes, you’ll still technically owe the debt. Delinquent accounts and accounts in collections will remain on your credit report for seven years. If it’s been longer than that, you can look into getting it removed.

How to dispute student loan errors on your credit report

Here’s a step-by-step guide to disputing credit report errors related to student loans:

1. Review your credit reports for errors.
2. Gather documentation to support your case.
3. Contact each credit bureau and follow their process to file a dispute.
4. Follow up if the dispute is denied.

What about defaulted student loans?

Defaulted student loans will remain on your credit report for seven years. After that, they should drop off entirely. But again, federal student loans can be collected indefinitely as there is no statute of limitations.

How to minimize the credit impact of student loans you can't remove

Firstly, continue making your payments on time. Taking other steps to improve your credit, like paying down revolving debt, can also help strengthen your overall credit profile.

If you’re behind on student loans, you might look into debt consolidation, revisiting your budget or working with a nonprofit credit counselor. If you have federal student loans, you can consider loan rehabilitation. After making nine on-time monthly payments within a 10-month period, your account will be moved from default status to good standing.

Conclusion

It’s possible to remove student loans from your credit report that shouldn’t be there. You can contact each of the credit bureaus to file a dispute and ultimately get it removed. Just know that a legitimate loan that’s in good standing will likely remain on your report for 10 years after it's closed.

Kikoff provides free tools to generate dispute letters and allows you to file a dispute electronically with TransUnion (or draft a letter to mail to Equifax or Experian). That can make it easier to start building a positive credit history.