Do guarantors (such as TG) report borrowers to credit bureaus for delinquency on student loan accounts?
Federal regulations require your lender to report information on each FFELP loan it makes or holds to at least one national credit bureau. In addition, your guarantor will report each loan it purchases as a default claim (i.e., a loan that the guarantor has acquired because the borrower has failed to make installment payments when due for a period of at least 270 days) to all national credit bureaus. If you are diligent about making your loan payments in a timely manner, it can have a positive effect on your credit history. Conversely, if you are negligent about keeping up with your monthly payment, it can adversely affect your credit history and your ability to obtain credit in the future. For a list of some of the major consequences of default, go to www.tgslc.org/borrowers/conseque.cfm. To obtain information about what is being reported on your credit report, you can visit the major credit bureaus’ websites at www.experian.com, www.equifax.com, and www.transunion.com.
