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Paid off student loan 10 yrs ago - new collection letter - ruin home buying?

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wenjotwo

Junior Member
What is the name of your state (only U.S. law)? Minnesota

I paid off my student loan ten years ago. Two days ago I received a letter from the U.S. Department of Education stating that this letter intends to collect by offset any payments due me (like tax returns).

I have searched extensively and cannot find my proof that it was paid off. I know I saved it, but I have moved twice in that time period and gotten divorced. In that time period I’ve had belongings (including my paperwork) in storage and in my ex’s basement. It’s not something I would have ever thrown out.

I have 15 days to dispute but the requirements for proof are pretty stringent and I have none. One required piece would be a canceled check but my bank only provides copies going back 7 years.

That is the background. The letter says I owe $25.24. Yes, that is practically nothing and I have no problem paying it to make it go away, especially since I have no proof otherwise.

But, the single most important question I have is this:

My student loan no longer appears on any of my credit reports. If I pay this, will it reappear on my credit report?

I am desperate to know the answer because I have been pre-approved for a mortgage and am actively looking at houses. If I make an offer on a house, my credit will be pulled again just prior to closing. Will this show up on my report and will it make a difference to my getting a mortgage if it is on there?
 



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