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May 14, 2008

Sallie Mae Credit Score Errors

Attention borrowers:

The credit scores of about 10 percent of Sallie Mae borrowers have been negatively affected by a glitch in the company’s computer system, according to a report by Bankrate.com.

Overnight, borrowers have seen their Equifax credit scores plummet by as much as 100 points.

The problem affects borrowers in graduated or extended repayment plans. These lower payments allow people to repay loans over 12 to 30 years, instead of the usual 10. But under Sallie Mae’s coding, Equifax read these payments as partial payments, meaning students were delinquent.

The student loan giant told Bankrate it is working to fix the problem and will supply a credit reference for people who need one.

A Sallie Mae spokeswoman confirmed the glitch. We’ll update the situation later when we hear more from the company.

Posted by Eileen Ambrose at 10:51 AM | | Comments (0)
Categories: Student loans
        

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