I paid my student loans late because I didn't know they existed...

[BarrettJ15]

Long story short, my parents took out a very small student loan from Sallie Mae for my freshman year. They wanted to help me build credit. I have zero recollection of this happening, and therefore didn't know these existed.

When SM started sending notices that payments would need to start soon, I wasn't living at home, and the notices got lost in the chaos of everyday living (my parents still have one in the nest). By the time I realized/was made aware of the situation, the account was 90 days overdue. We promptly paid off the entire loan (I told you it was very small!), but the damage was done. That mark on my credit report has plagued my score for over a year and will continue to do so for years to come from what I've read. My scores dropped by almost 100 points across the board.

Now, I know my parents did not intend any harm. They meant well, and every dime of the loan went to my university. I don't see this as fraud or forgery. I don't want to take any legal action, but I'm trying to find a way to keep this from killing my credit forever. Any suggestions?

 

[disagreeable]

Get down on your knees and thank your parents for putting you through college. Figure out how it is these loans were taken out, with your permission, if you never gave authorization to your parents to have access to your electronic signature authorization. Did you give your passcodes out in your sleep? Did they have your keyboard bugged? Do you have a multiple personality disorder? Do you have functional memory problems? Have you suffered a head injury?

 

[mightymoose]

There are a couple ways to address the credit issue.
First, you can ask the creditor to change the status to something more favorable. You would be surprised what asking can do.
Second, you can add a statement to your credit report to briefly explain the situation. Anyone who accesses your credit file will see this and be able to take it into consideration.
Otherwise, time is the only thing that fixes credit.
The only other unlikely option is to show that your parents obtained the loan without your authorization. The negative mark should perhaps be on their record and not yours? I suspect you had some level of involvement with the loan and just don't recall.

 

[Betty3]

It seems per your post your parents took out the loan to help you build your credit. Therefore, it seems your name would be on the loan/you would have authorized the loan. How old were you when they took out the loan?