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https://www.politico.com/news/2020/0...nt-loan-272334
"Nearly 5 million student loan borrowers who got a break on their monthly payments from Congress under the economic rescue law have been hit with incorrect information on their credit reports that lowered credit scores in some cases, POLITICO has confirmed.
The Trump administration has been rushing to fix the errors made by a company the federal government hired to collect and manage student loans. Great Lakes Educational Loan Services provided incorrect information for approximately 4.8 million federal student loan borrowers to credit bureaus such as Equifax, Experian and TransUnion, Education Department officials said Wednesday.
Credit reports are used by everyone from lenders to landlords to employers to assess prospective customers, tenants or employees. The problem affected borrowers who owe federal student loans and who were automatically granted a six-month pause on their payments under the CARES Act, H.R. 748 (116).
Congress anticipated that deferring those payments might blemish a borrower's credit report. The errors on borrowers' credit reports come as credit scores and history are especially important as Americans in financial distress seek access to credit. So Congress required the Education Department to make sure the deferred payments were reported to credit bureaus as on-time payments.
But that didn’t happen for most federal student loan borrowers whose loans were managed by Great Lakes."
"Nearly 5 million student loan borrowers who got a break on their monthly payments from Congress under the economic rescue law have been hit with incorrect information on their credit reports that lowered credit scores in some cases, POLITICO has confirmed.
The Trump administration has been rushing to fix the errors made by a company the federal government hired to collect and manage student loans. Great Lakes Educational Loan Services provided incorrect information for approximately 4.8 million federal student loan borrowers to credit bureaus such as Equifax, Experian and TransUnion, Education Department officials said Wednesday.
Credit reports are used by everyone from lenders to landlords to employers to assess prospective customers, tenants or employees. The problem affected borrowers who owe federal student loans and who were automatically granted a six-month pause on their payments under the CARES Act, H.R. 748 (116).
Congress anticipated that deferring those payments might blemish a borrower's credit report. The errors on borrowers' credit reports come as credit scores and history are especially important as Americans in financial distress seek access to credit. So Congress required the Education Department to make sure the deferred payments were reported to credit bureaus as on-time payments.
But that didn’t happen for most federal student loan borrowers whose loans were managed by Great Lakes."
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