How to remove missed student loan payments from credit report

Step 1: Check your credit reports.

Look for inaccurate information, which can be errors with the account balance or number, disbursement date, or payment status. You can pull a freed credit report from the three major credit bureaus — Equifax, Experian, and TransUnion — at annualcreditreport.com.

Step 2 – File a dispute.

You can dispute online or through the mail by sending a dispute letter to the bureau showing inaccurate information. You’ll want to attach evidence supporting your case, which can be a copy of a student loan statement, and proof of identity (e.g., passport, utility bill, Social Security card, etc.).

Consider mailing your documents “return receipt requested” for proof that the credit reporting company received it. Keep a copy of the letter for your records. You can click here to download a sample student loan account dispute letter from the Consumer Financial Protection Bureau (CFPB).

Step 3: Wait for a response.

Federal law gives the credit reporting bureau 30 days in most cases to respond depending on the type of dispute. During that time, the company is supposed to investigate the dispute by checking its records and contacting the source of the disputed information (aka, the data furnisher), your student loan servicer.

From start to finish, the process to remove student loans from your credit report can take nearly two months.

If you lose the dispute…

You can dispute more than once. But the next go-around, make sure to include additional information. Resubmitting the same information could get the dispute denied automatically for being frivolous.

If the second attempt doesn’t work, you have two options.

• File a complaint with the Consumer Financial Protection Bureau.

• Hire an attorney specializing in Fair Credit Reporting Act (FCRA) laws. You can find one through the National Association of Consumer Advocates’ website.

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Late payments on any type of debt can be detrimental to your credit. Payment history makes up 35% of your total credit score, and one late or missed payment on your student loans could cause a dip in your score.

But sometimes, mistakes happen. If you’ve missed a payment, you might have some recourse with a student loan goodwill letter. Here’s how these letters work, and why you might want to write one.

What Is a Goodwill Letter?

A goodwill letter is a notice you write to your lender regarding a late payment that has been reported to the credit bureaus and shows up on your credit report. You can write these letters for any loan or line of credit, including a mortgage, auto loan or student loan.

The purpose of the letter is to request the lender remove the overdue payment on your credit report as an act of goodwill. If the negative mark is removed from your report, your credit should rebound as if the payment had never been missed at all.

Are Student Loan Goodwill Letters Successful?

There aren’t any concrete statistics on the success rate of these letters, and some lenders may be more receptive to it than others. But there’s no harm in making this request.

It’s a good idea to contact your lender as soon as you see a late payment charge to your account or a ding to your credit score. The sooner you reach out, the more understanding and proactive your lender may be.

The potential success of the letter will depend on several factors, including the rules set by your lender, your payment history and who reads your letter.

How to Write a Convincing Goodwill Letter for Student Loans

If you’ve noticed a negative mark on your credit report, contact your lender right away to request the removal. If they ask for the request in writing, here’s what to include.

• Some personal information. Include your name, account number and any other identifying information regarding your account. Some lenders might need your phone number, address or other corresponding details to confirm your identity. Along with that, find out where you should send your letter. If you’ve called your lender, ask for the representative’s name so you can personally address your letter.
• Late payment details. Talk about when the late payment occurred and if possible, include any documentation that shows the late payment happened when you say it did.
• Reason for late payment. Discuss why this oversight happened in the first place. For instance, did you miss a payment because of a job loss? Were you in the hospital or had an emergency that prevented you from staying on top of your payments? Depending on your lender, you might need to show proof of your claim before the request is accepted.
• Clear request for removal. Specifically request the removal of the late payment from your credit report. You may want to include how the ding hurt your credit score and why you want to keep your score as high as possible. For example, if you’re about to apply for a mortgage or auto loan, you need to have excellent credit to qualify for the lowest interest rate available.
• Show that you have made payments. Providing a detailed history of your on-time payments will help show you do have the ability to repay your student loans. The more you can prove how responsible you are with credit, the more likely it is that your request will be approved.
• Supporting documents. If you had a medical scare that made you miss a payment, you might want to include any paperwork from your hospital stay. This isn’t always required but can help save you time in the long run by including it so the lender doesn’t come back with this request.

You’re asking your lender to do you a favor, so make sure your request is polite and respectful. Avoid rude, threatening, ranting or demanding language in your letter.

Sample Student Loan Goodwill Letter

Sally Smith
Account number: 123456789
Phone number: (555) 123-4567

1 Main St.
Anytown, CA 12345

To Whom It May Concern:

I appreciate your time and consideration in reading my letter. I’m writing today to request the removal of a late payment reported on April 28, 2021.

For the last five years, I’ve had an impeccable track record of on-time student loan payments. Unfortunately, a family loss earlier this year caused me to fall behind on payments. While I’ve since made the outstanding payment, the late charge is still showing up on my credit report.

Since my credit report influences future credit opportunities, such as buying a home or a car, I’m worried this small hiccup illustrates a different picture of my otherwise strong credit report. Is it possible to get this late payment mark removed from my credit report?

I’m attaching a copy of my payment history for the last five years as well as details of the family loss for your records. Please let me know what you need from me to expedite this request.

Kind regards,
Sally

Sending Your Student Loan Goodwill Letter

The quickest and easiest way to send your letter is through email, but that shouldn’t be the end of it.

Send your letter to a specific person if possible, whether it’s the customer service representative you spoke to on the phone or someone else they advise you to send it to. Your representative might say this is enough, but they might also direct you to go a step further by sending a hard copy.

While this may be a bit more inconvenient, the extra time and effort are minimal compared to what you’d save by removing the bad mark from your credit report.

What to Expect After You Send Your Late Payment Removal Letter

Whether you send your letter via email or regular mail, don’t expect a quick turnaround. You might not hear back from your lender for at least two-to-three weeks. If you haven’t heard anything by the end of the three weeks, reach out to your lender to make sure your letter was received and ask about a timetable for a response.

Keep in mind that lenders aren’t required to approve your request, but staying on top of them may help your case.

Best Student Loan Refinance Lenders Of 2022

Find the best Student Loan Refinance Lenders for your needs.

How do I remove paid student loans from my credit report?

How long do missed student loan payments stay on credit report?