Things You'll Need
Settlement offer or payment plan
Order your credit report from the three major credit bureaus--Experian, Equifax and TransUnion. You can obtain a free copy of your credit report at AnnualCreditReport.com. Simply complete your request online, or download the appropriate form and mail it to the credit bureaus.
Review your credit reports and locate all of your student loan accounts. Write down the lender or collection agency's name, your account number, outstanding balance, amount of your last payment and other relevant details. Make notes of any errors or inaccurate information you find.
Contact the lender or collection agencies involved. Depending on your financial situation, the lender or agency may offer you a settlement offer for less than what you actually owe. If you agree to a monthly payment plan, make sure the plan is affordable for your budget. In addition, work with the to remove
your defaulted student loans from your credit score, as soon as you pay the balance in full.
Get the agreement in writing. Ask the lender or agency to send you a confirmation letter stating the payment agreement terms, your current balance due and the appropriate due dates for the remaining payments.
Submit your required payments in a timely manner. As soon as you make your final payment, request a paid in full letter. This letter is proof that you did fulfill the payment agreement's requirements.
Verify that your student loans have been removed from your credit reports. You can order your credit report by visiting Experian.com, Equifax.com and TransUnion.com. It may take up to 30 days for the lender or collection agency to contact the credit bureaus about your account status. If the student loans still appear on your credit reports, submit a formal dispute form to each credit bureau.