How Long Do Student Loans Stay on Your Credit Report? Understanding Your Rights Under Federal Law
- Joeziel Vazquez
- 2 days ago
- 12 min read
Written by: Joeziel Vazquez
CEO & Board Certified Credit Consultant (BCCC, CCSC, CCRS)
17 Years Experience
Published: October 27, 2025
Reading Time: 15 minutes
Student loan debt affects millions of Americans, and understanding how these loans appear on your credit report is crucial to protecting your financial future. While most negative information disappears from credit reports after seven years, student loans operate under different rules that can significantly impact borrowers for much longer periods.
As someone who has spent 17 years helping consumers navigate credit challenges, I've seen firsthand how confusion about student loan reporting can devastate credit scores and prevent people from achieving their financial goals. This comprehensive guide will explain exactly how long different types of student loans stay on your credit report, the critical legal distinctions that apply, and what rights you have under federal law, including a landmark 2024 Supreme Court decision that changed everything for borrowers dealing with incorrect federal loan reporting.
Understanding the Fair Credit Reporting Act (FCRA) and Student Loans
The Fair Credit Reporting Act (15 U.S.C. § 1681c) generally requires that most adverse information, such as late payments, charge-offs, and collection accounts, must be removed from credit reports after seven years. This protection exists to give consumers a fresh start and prevent old financial mistakes from haunting them indefinitely.
However, student loans, particularly federal student loans, operate under a critical exception to this seven-year rule.
The Seven-Year Rule: How It Works
Under 15 U.S.C. § 1681c, the seven-year period begins with respect to any delinquent account that is placed for collection upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity. This is known as the "date of first delinquency."
What this means in plain English: The clock starts ticking 180 days after you first missed a payment, not when the account goes to collections or when you make your last payment. This date cannot be reset by subsequent activity, debt sales, or collection attempts.
For most debts like credit cards, personal loans, and medical bills, this seven-year rule provides clear protection. But federal student loans are different.
Federal Student Loans: The Indefinite Reporting Exception
Here's the critical legal distinction that catches many borrowers by surprise: Federal student loans can remain on your credit report indefinitely until paid in full or resolved through specific programs.
This exception is codified in the Fair Credit Reporting Act itself, which references sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965 (20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3)), which govern insured or guaranteed student loans and national direct student loans. Fair Credit Reporting Act 15 U.S.C § 1681 Revised September 2018 +2
Why Federal Student Loans Are Different
Federal student loans are regulated by the Higher Education Act of 1962 (HEA), which explicitly exempts certain federally-guaranteed student loans from the FCRA's seven-year age-off provision.This means:
Defaulted federal student loans can appear on your credit report indefinitely until you take action to resolve them
There is no statute of limitations on collecting federal student loan debt
The federal government has extraordinary collection powers, including wage garnishment, tax refund seizure, and Social Security offset without needing to sue you first
The statute of limitations on federal student loans was eliminated in 1991. Prior to that change, the limitation period was six years.
Types of Federal Student Loans and Credit Reporting
Direct Loans and FFEL Program Loans: These loans go into default after 270 days (nine months) of non-payment while not in deferment or forbearance. Once in default status, the negative information will remain on your credit report for seven years from the date the loan entered default, but only if you take action to rehabilitate or consolidate the loan. If you do nothing, the default status can remain indefinitely.
Federal Perkins Loans: Perkins student loans have even stricter rules and can remain on your credit report until paid in full (20 U.S.C. § 1087cc(c)(3)). This is one of the most severe credit reporting exceptions in federal law. The Federal Perkins Loan Program ended in September 2017, but many borrowers still have outstanding Perkins loans that follow these rules.
15 U.S.C. § 1681c Explained: The Seven-Year Rule and Its Exceptions
To fully understand your rights, it's important to know exactly what 15 U.S.C. § 1681c says about student loan reporting.
The statute establishes that consumer reporting agencies cannot include in credit reports:
Bankruptcies older than 10 years
Civil suits, civil judgments, and arrest records older than seven years
Paid tax liens older than seven years
Accounts placed for collection or charged off older than seven years
Other adverse information (except criminal convictions) older than seven years
However, the law includes critical language that exempts government-insured or guaranteed student loans from these time limits. The FCRA specifically cross-references the Higher Education Act provisions governing federal student loans, creating a permanent exception to the seven-year rule.
Does the Seven-Year Rule Apply to Private Student Loans?
Yes! Private student loans are treated like any other consumer debt and follow the standard seven-year reporting period from the date of first delinquency. However, private loans typically default much faster:
Private student loans usually go into default after only 120-180 days of nonpayment
Once in default, the negative information stays for seven years
The statute of limitations for collecting private student loan debt varies by state, generally ranging from three to 10 years
After seven years from the date of first delinquency, private student loan defaults must be removed from your credit report, even if the debt remains legally collectible in your state.
No "Tolling" of the Seven-Year Period
A common misconception involves the concept of "tolling," the idea that certain actions could pause or restart the seven-year clock. This is false when it comes to credit reporting.
Subsequent activity, such as resolving the debt or one debt collector selling the debt to another collector, is irrelevant to the seven-year rule. The following actions do NOT restart the seven-year reporting period:
Making a payment on an old debt
Acknowledging the debt
Entering a payment plan
The debt being sold to a new collection agency
Settling the debt for less than the full amount
The only relevant date is the original date of first delinquency. Any furnisher that attempts to "re-age" a debt by resetting this date is violating the FCRA and can be sued for damages.
Important distinction: While these actions don't restart credit reporting timelines, they may restart your state's statute of limitations for lawsuits in some jurisdictions. Credit reporting and legal liability are separate issues.
The Landmark Kirtz v. Department of Agriculture Case: What It Means for Borrowers
On February 8, 2024, the United States Supreme Court issued a unanimous decision that fundamentally changed the landscape for student loan borrowers dealing with credit reporting errors by federal agencies.
Background of the Case
Reginald Kirtz secured a loan from the Rural Housing Service, part of the U.S. Department of Agriculture. Although Kirtz repaid his loan in full by mid-2018, the USDA continued to tell credit reporting company TransUnion that his account was past due, harming his credit score and his ability to secure future loans at affordable rates.
After the USDA failed to investigate or correct the error despite notification, Kirtz sued under the Fair Credit Reporting Act. The USDA moved to dismiss the case, claiming sovereign immunity, the legal doctrine that generally prevents the federal government from being sued for money damages.
The Supreme Court's Decision
The Supreme Court, in a unanimous opinion authored by Justice Gorsuch, held that the FCRA unambiguously waives the federal government's sovereign immunity, allowing consumers to sue federal agencies for violations of the Act.
Why this matters: Federal agencies are among "the largest furnishers of credit information" to consumer reporting agencies. Before this decision, there was significant uncertainty about whether borrowers could hold the federal government accountable for credit reporting errors related to federal student loans and other government debt.
Impact on Student Loan Borrowers
The Kirtz decision has profound implications for the millions of Americans with federal student loans:
You can sue the Department of Education and other federal agencies if they willfully or negligently furnish false information about your student loans to credit bureaus
You can seek actual damages, statutory damages (up to $1,000 for negligent violations), and attorney's fees under 15 U.S.C. §§ 1681n and 1681o
Federal agencies must comply with FCRA investigation requirements when you dispute information on your credit report
The federal government cannot hide behind sovereign immunity to avoid accountability for credit reporting violations
The Court noted that a 2021 study cited by the Consumer Financial Protection Bureau found that over 34% of consumers surveyed were able to identify at least one error in their credit reports, and mistakes like these can make it "difficult or impossible" for consumers "to obtain a mortgage, auto loan, student loan, or other credit."
How to Use Your Kirtz Rights
If you believe your federal student loan is being incorrectly reported:
Dispute the error with the credit bureaus (Equifax, Experian, TransUnion)
Document everything including your communications with your loan servicer
File a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint
Consult a consumer rights attorney if the error persists, you may have grounds for a lawsuit
Current State of Student Loan Credit Reporting (2025)
Recent changes have significantly impacted how student loans are reported:
The Fresh Start Program and Credit Reporting
In April 2022, the Department of Education announced the Fresh Start program, a one-time initiative to help an estimated 7.5 million borrowers with defaulted federal student loans avoid the negative effects of default. Consumer Financial Protection Bureau Key features included:
ED reported eligible defaulted loans as "current" during the program period and removed default notations from credit reports for borrowers who made payment arrangements U.S. Department of Education
Federal student loans delinquent for more than seven years were deleted from credit reports entirely Consumer Financial Protection Bureau
Borrowers received a temporary respite from collections, including wage garnishment
Return to Normal Reporting (2025)
After COVID-19 loan pauses ended in late 2023, the government issued a 12-month moratorium on reporting student loans to credit bureaus. That period quietly ended on January 1, 2025, with no formal notice to borrowers.
What this means now:
Federal student loan payments are fully enforceable
Missed payments are being reported to credit bureaus
Recent data from TransUnion shows that recent defaults have caused borrowers' credit scores to drop by an average of 63 points, and as much as 175 points for borrowers with previously excellent credit (780 or above)
How to Remove Student Loans from Your Credit Report
For Federal Student Loans in Default
Federal Loan Rehabilitation: This is the only guaranteed way to remove a federal student loan default from your credit report.
Make nine consecutive, on-time, full monthly payments (within 20 days of due date)
Payments must be reasonable and affordable based on your income
Once you complete rehabilitation, the loan holder is required to request that the default status be deleted from your credit report
You can only rehabilitate a federal loan once
Important: If you have an FFEL loan and you consolidate instead of rehabilitate, the default will stay on your credit report for the full seven years, even if you pay it in full.
Federal Loan Consolidation: This moves your loans out of default but does NOT remove the default from your credit report. The default notation remains for seven years from the date you defaulted.
For Private Student Loans
Private student loans in default will automatically fall off your credit report seven years from the date of first delinquency. You can also:
Dispute inaccuracies if the information is incorrect
Negotiate a settlement (though this won't speed up the seven-year clock)
Request validation of the debt if it's with a collection agency
For Accurate Information
If the negative information is accurate and within the reporting period, it generally cannot be removed. However, you can:
Add a 100-word statement to your credit report explaining the circumstances
Focus on building positive credit through on-time payments on other accounts
Monitor all three credit bureaus for errors or inconsistencies
Student Loan Credit Reporting: Positive vs. Negative Information
Not all student loan information on your credit report is negative. Understanding the difference is crucial:
Positive Reporting
On-time payments build positive payment history
Successfully paid-off student loans remain on your report for up to 10 years as closed accounts
Good standing accounts contribute to credit mix
Long-term accounts increase average age of credit
Negative Reporting
Late payments (30, 60, 90, 120+ days late) remain for seven years
Default status remains seven years (if rehabilitated) or indefinitely (if not addressed)
Collections accounts remain for seven years from date of first delinquency
Charge-offs follow the same seven-year rule
Special Considerations and Exceptions
Death and Student Loans
Federal student loans are discharged upon the borrower's death. Private student loans may or may not be discharged depending on the lender's policy and whether there was a co-signer.
Total and Permanent Disability Discharge
Federal student loans can be discharged if you're totally and permanently disabled. This discharge should result in the removal of the loan from your credit report.
Bankruptcy and Student Loans
While discharging student loans through bankruptcy has historically been nearly impossible, recent changes mean the Department of Justice will now work with debtors and consent to discharge in certain cases based on a sworn attestation form showing inability to pay.
Incorrect Reporting Timeline
If your student loan is showing an incorrect:
Date of first delinquency
Loan balance
Payment status
Origination date
You have the right to dispute this information under the FCRA. The furnisher must investigate and correct or delete inaccurate information within 30-45 days.
Your Rights Under the FCRA
Beyond the Kirtz decision, you have extensive rights under the Fair Credit Reporting Act:
Access to your credit reports - One free report from each bureau annually at AnnualCreditReport.com
Right to dispute inaccurate information - Bureaus must investigate within 30 days
Right to add explanatory statements - Up to 100 words explaining circumstances
Right to sue for violations - Both for willful and negligent violations
Right to compensation - Actual damages, statutory damages, attorney's fees, and punitive damages for willful violations
When to Consider Legal Action
Consult a consumer rights attorney if:
Your disputes are ignored or inadequately investigated
The same error reappears after being corrected
You've suffered significant damages (loan denials, higher interest rates, lost employment opportunities)
A federal agency is involved and fails to comply with FCRA requirements
A furnisher continues reporting information you've proven is inaccurate
Practical Steps to Protect Your Credit
Immediate Actions
Check all three credit reports for student loan accounts
Verify payment history accuracy against your records
Ensure dates are correct (origination, first delinquency, expected removal)
Dispute any inaccuracies immediately in writing with documentation
Monitor your loan servicer - Servicer changes are common and can cause reporting errors
Long-Term Strategy
Enroll in income-driven repayment if struggling with federal loans
Set up automatic payments to ensure on-time payment history
Document all communications with servicers and collection agencies
Request written confirmation of loan status changes
Review credit reports quarterly during dispute periods
Consider credit monitoring services to catch errors quickly
If You're in Default or Heading There
Contact your servicer immediately - More options exist before default
Apply for forbearance or deferment if facing temporary hardship
Explore income-driven repayment plans - Payments as low as $0/month based on income
Consider rehabilitation if already in default
Understand your rights under programs like Fresh Start
Seek help from a certified credit consultant or student loan counselor
The recent changes to student loan forgiveness programs and extended deadlines under Biden's initiatives have created new opportunities for borrowers. Understanding how these programs interact with credit reporting is essential for maximizing your benefits.
The Bottom Line: Timeline Summary
Private Student Loans:
Default: After 120-180 days of non-payment
Credit reporting: 7 years from date of first delinquency
Collection statute of limitations: 3-10 years (varies by state)
Federal Direct Loans and FFEL:
Default: After 270 days of non-payment
Credit reporting: Can remain indefinitely if not resolved; 7 years from default date if rehabilitated or paid
Collection statute of limitations: No limit
Federal Perkins Loans:
Default: After 270 days of non-payment
Credit reporting: Remains until paid in full
Collection statute of limitations: No limit
Key Takeaways
Most negative credit information follows a seven-year rule, but federal student loans are a major exception
Federal student loans can remain on your credit report indefinitely until you take action to resolve them
The Kirtz Supreme Court decision gives you powerful rights to sue federal agencies for credit reporting violations
Private student loans follow standard seven-year reporting rules and cannot be reported beyond that timeframe
Rehabilitation is the only guaranteed way to remove a federal student loan default from your credit report
The seven-year clock cannot be restarted by payments, settlements, or debt sales
You have extensive rights under the FCRA, including the right to dispute, sue, and receive compensation for violations
Understanding how long student loans stay on your credit report and your rights under federal law is essential for protecting your financial future. Whether you're dealing with private loans that will age off after seven years, federal loans that may remain indefinitely, or credit reporting errors that violate your FCRA rights, knowledge is your most powerful tool.
If you're struggling with student loan credit reporting issues, don't wait. The sooner you address problems, the sooner you can begin rebuilding your credit and working toward your financial goals. And remember: after the Kirtz decision, even the federal government must answer for violating your consumer protection rights.
For more information on ongoing student loan lawsuits involving servicers like Nelnet and MOHELA, or to understand what happened after the Supreme Court rejected broad student loan forgiveness, check out our related articles.
About the Author:
Joeziel Vazquez is a Board Certified Credit Consultant (BCCC, CCSC, CCRS) and CEO of Credlocity with 17 years of experience helping consumers navigate complex credit issues. His expertise includes credit repair, debt management, and consumer rights under federal credit laws. Connect with Joeziel on LinkedIn.
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