Transcription
Breaking news, you guys. I wanted to bring you this information. Now, with Donald Trump making all these changes to student loans, he inadvertently created a loophole for you to get your student loans off of your credit report.
Now, if you are not aware, come May 5th, 2025, student loans will now be actively collected on. And with the changes, dismantling of the Department of Education and student loans now not being on pause anymore, many people have seen their credit score take a big hit. Now, this has created a loophole that I'm about to break down.
Now, it is very important that you guys, if you know someone with student loans that's been affected, make sure you share this video to them because you're going to see the more people that know about this, the better it's going to be for everybody to take the steps that I'm going to break down. And even better, I have someone in my elite credit system and he's part of my group coaching. By taking the steps that I'm going to give you guys, he had student loans reporting on his credit report, was able to sue the credit bureaus and within four months they settled the claim with him and he got paid and was able to get the student loans removed off of his credit report.
Now, if you're new to this channel, this channel is designed to help you no matter where you are in your credit journey and how to leverage your credit to make money. So, subscribe to the channel and if you go to my website, you can get a free heart inquiry removal package. I'll leave that link in the description below.
Now, one of the things that if you recently got hit by those student loan late payments, you need to go and check your credit report because this is key. One thing about student loans they have a bad habit of doing is reporting out of the blue 90 days late. How is that possible that I'm 90 days late when the prior two months is showing on-time payments? Then it's not possible for me to have a 90-day late pay if the prior month was on time and the month before that. So that is not reporting properly. It is not accurate.
So what you need to know is the Higher Education Act of 1965. Now this was made to govern over student loans. So especially aid programs with student loans and how it needed to be regulated especially on the requirements of reporting of your student loan. Also, it has rules about how they are supposed to maintain records, fairness, and accuracy and all that these student loan servicers should be following your local state regulations.
So, here's lie your opportunity, especially with those loans going out of default. Many of you guys have moved and they never sent you any notices, okay? They're trying to do everything online in a portal, but you never got noticed that you actually had those student loans being restarted. So, that is one way you want to make sure you go into that portal and show of that old address if you have currently moved, which a lot of people did because student loans was on pause.
The second problem is what I name the reporting issues. They are reporting that inaccurately. Many of you guys also with the change over from Naviant to new servicers, they had deleted a lot of your old payment history and you saw your student loans as they were shuffling those around. Actually, your score dropped because they remove payment history while they were moving that around, and payment history is 35% of your credit score, the largest chunk. If you were applying for credit and you got denied, you need to get those letters of denial. Keep that information because this is going to be part of your case.
Now, the reason Naviant was removed and banned as a servicer, they violated the Higher Education Act contracts. And many of you had Naviant. They were one of the biggest loan servicers for student loans. So what you need to do because Naviant was caught misallocating payments also diverting people in payment plans that wasn't beneficial putting them in deferment instead of giving them payment plans that the government offered that could have reduced your payments. They have been banned because they violated the HEA act.
So, you need to get your hands on the accounting history on your student loans. That is very important because you want to see the history on how your student loan company been allocating your payments and have they been doing it properly and if you got deferments in the past, was it better options for you? Because now that means your balances that you currently have is inaccurate. That means if they hit you with a late payment, that late payment was inaccurate. And some of these fees that they charge you even to go into these plans, many of times some of these companies was slapping on fees for processing that that was illegal for them to do.
Now, here's what you really need to do is get those accounting records for your student loans the whole time. Log to studentaid.gov and you can get that history. Now, if they fail to maintain that, then they have a problem. Some of you guys had these student loans for a long period of time. It changed hands from servicers. Even Sally Mae, they got caught doing this. A lot of these companies have gotten caught doing some of the tactics that Naviant was doing. So, you want to look at that whole history to see if you are totally being reported and charged more for student loans than you actually owe.
Now, the next step once you looked at the reporting and you're seeing that 90-day reporting that's just out of the blue, the prior two months are on time, you want to find your inaccuracies across the board because what we are seeing, you may have Equifax not reporting that way, but Experian and TransUnion may be reporting that way and the reporting is all over the place. Remember, if it's coming from one source, they must all be consistent because the source, which is the student loan servicer, is the one that's giving the credit bureaus the information. So, you need to find those inconsistencies across the board.
Now, with my elite credit system, this does this for you automatically and create your dispute letters for you. It just automatically with the AI software pick up these inconsistencies, but you can look at it yourself.
Now the next important step that you need to take, you got to dispute with the credit bureaus directly. You have to give them a chance to correct the misreporting. Now though, you have the evidence of the misreporting. So that is important.
Now, importantly with the credit bureaus, if you don't remember one thing that I'm going to tell you, this is one of the secrets. You must use an affidavit with your disputes because especially Equifax and Experian has been caught with this with the CFPB. They have been delaying trying to investigate disputes. They have lawsuits bought against them, uh, with the CFPB for this, deterring people. And so what you'll see even with TransUnion, you will send in your dispute letters certified with your ID with all your information, utility bills, and then they'll send you a reply back. We don't know if this is you. They're doing that on purpose to stall you out. If you don't know this fact, the credit bureaus are not federal agencies. They're private corporations. And they make billions of dollars of selling your data. That's all they do.
But here's the thing. The worse your credit score is, the more money they make by selling your data. Because banks make money off of interest. So, if you have bad credit, now the banks only have to give you a $300 credit card and now it's justified to charge you 29% interest rates because they're going to say you're a risk. Do you know banks and lenders pay more for your bad credit and subprime information because if you have good credit then they got to offer you lower credit rates. Banks primarily make money off of interest. That's it. Sometimes annual fees. So this is why the credit bureaus are resistant to remove that negative information. It's all a setup. That's why they want to keep your credit score down. Always remember, you're going to see 83% inaccuracies on credit reports, meaning that they have wrong and negative information on you, but you never haven't been one case that they accidentally gave somebody a better credit score than what they deserve. That they just magically gave somebody an 850 credit score because that is not in their benefit and it's not in their bank's benefit. Remember, you are not their customer. The banks are lenders, landlords are their customers. You're their product. Period. That's why they don't want to be bothered with you.
So when you send that affidavit, you're getting it notarized. Somebody that your state has given authority to and you sit down with them and you have them to notarize that affidavit simply swearing that you are who you're stating in to be. And that's it. Once you do that one time, you just keep making copies of that and sending it out with every dispute.
Now, I have these affidavits at my website in my DIY package and we use them with my elite credit system. They're already in there. But you want to use this so you can stop the stall tactic. And remember, an affidavit is a legal document. So, you're going to use that with your proof that you got with the reporting being inaccurate, and you can send your dispute letters to the credit bureaus.
Now, if they do not make the proper adjustment, you can dispute two or three more times just to get your documentation to have your proof that they are not removing the inaccurate information. And make sure you send these certified mailers. Also, request that information for your student loan servicer. Okay? Make sure you send a certified letter demanding the whole accounting record on your student loan. Send that certified mail.
Now, here's the key on all of this. All of these companies, you may be sending certified mail, but guess what? They don't send you certified mail back. So, that's their problem. They don't have proof that they ever sent you anything in response, but you got your certified. So when you take it to court or you have it, I never got a response. They don't have proof of that. So make sure you protect yourself by sending everything certified. You guys do not dispute online. People tell you that you lose your rights by doing that. Even with the bureaus, if you don't put them on the hook, remember to respond within 30 days and do that investigation. If they don't send that back in time, they got to delete it. So that's another way for you to get that off. Do not do it online because you're giving them a way out. They sell millions of dollars by doing that online and they don't physically have to mail that out. And when they mail it to you, you have proof when they sent it out through the post stamp.
So, this is what I'm telling you guys, you want to build the case. And an additional part that you want to take this last step. Remember you guys, some of you have went to schools and these schools like the Bride, Lincoln Tech, ITT Tech, many of them actually were putting people in wrong programs that they did not agree to. And they were being charged these student loan tuitions. And these companies were for-profit schools racking up student loan debt on you while they were getting paid.
Now, even with colleges, a lot of you guys may have experienced this cuz I did when I was in college. You will go for a program and doing courses that you thought is for your degree. Come to find out, your counselor have recommend you courses that wasn't for your degree. About ready to graduate to find out, hey, I got to do another year and I spent all of this money. All of those deceptive practices can set you up for student loan dismissal.
Now, especially if you went to those schools and they were telling you, you know, you're guaranteed a job when you leave here with these technical schools, all of that, there is a program that you need to apply for. Whether this happened to you or not, it is called the borrower's defense fund. Okay? The borrower's defense fund. So, here's the thing. If you had any of those weird things happening to you, you definitely need to apply for that. But even if you didn't, with Trump making all these changes to the Department of Education, they have a time period to when you put in that application to respond back to you. You want to take advantage of that. That's why I'm telling you guys, share this with as many people as possible because if you can back that up, the better it is for everybody to inundate them. Make sure that you share this and if your school closed down, you qualify for closed school discharge. Those are the two programs. Either way, you guys, make sure you put in that application. You can actually go to your servicers website and they have the application there. Put it in. Share this with a lot of people, okay? Because you want to make sure that we flood this.
Also, make sure with the CFPB after you did those disputes with TransUnion and Equifax, got two or three rounds of disputes in, you put in a complaint with them. You already took the steps that I gave you to get the documentation. Now, you can just file your complaint online. Just upload it. And you guys need to make complaints with your local state attorney general. Make sure before May 5th, you make some payments on that student loan. Do not go into collection. Do not let them garnish you. And you want to be on the right side of things. Also, look on your state level. They have protections like the state of New Jersey. They have their own consumer fraud laws for even for collections and bills that you are owed. If they're trying to collect from you these services and it's not accurate on the state level, there's the Consumer Fraud Act. In New Jersey and other states have similar acts and protections for you. And if they're not following by these statues in these states, once again, they're violating the Higher Education Act.
So hopefully this information was helpful to you guys. If you have any questions or comments, drop it in the comments section. But if you got more detailed questions for me, just go to my website and all your questions go to my cell phone. I'll see you guys in the next video. Stay tuned.