1 million credit scores lowered by Sallie Mae

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May 15th, 2008 - Posted by Joe

The largest provider of student loans in the United States, Sallie Mae, made a critical reporting error which artificially lowered the Equifax credit scores of approximately one million borrowers.

Like all lenders Sallie Mae reports account history information for all their borrowers to all three of the major credit bureaus including Equifax, Experian and TransUnion. In the most recent data transfer an error caused about 10% of all accounts, or about one million total borrowers, to appear delinquent.

Sallie Mae realized the issue and contacted all three credit bureaus. Equifax had already posted the information the impacted individual's accounts which immediately lowered their credit scores. Experian or TransUnion scores were not impacted.

The issue has been resolved and the Equifax credit scores have been restored for impacted individuals. Those who believe they may have been impacted are encouraged to contact Sallie Mae directly at 1-888-2-sallie. Sallie Mae will also provide credit references to impacted consuers upon request.

"We certainly and fully understand the importance of one's credit rating and we worked with urgency to resolve this situation," Said Sallie Mae spokesman Tom Joyce.

Those consumers that utilize a credit report monitoring service would have received immediate alerts when these changes were posted to their Equifax credit report and score. To learn more about credit report monitoring services we suggest visiting our credit report monitoring service reviews and comparison.