Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Show
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 LoansIf 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.
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 LetterSally Smith 1 Main St. 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, Sending Your Student Loan Goodwill LetterThe 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 LetterWhether 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 2022Find the best Student Loan Refinance Lenders for your needs. Can I get late student loan payments off credit report?While legitimate information about your student loans cannot be removed from your credit report, certain items could be removed, including: Missed or late payments while your student loans are in forbearance or deferment. Incorrect student loan account information or accounts that don't belong to you.
How long do student loan late payments stay on credit report?With a private loan, lenders may report late payments after just 30 days; for federal loans, it's typically 90 days or more. Once reported, your delinquency can stay on your credit report for seven years, which may hinder your ability to get a new credit card or cause your interest rates to rise on current cards.
|