Publication Date: November 19, 2003
Bulletin ID: DLB-03-43
Summary: Helping Your Students Protect Their Information at Credit Bureaus
Posted on 11-19-2003
November 2003
DLB-03-43
Subject: Helping Your Students Protect Their Information at Credit Bureaus
Dear Partner:
As the lender in the Direct Loan Program, we want to help you and your students protect their information. As the school, you may wish to make the following information available to your borrowers.
Federal law requires the government to report loan information and the subsequent monthly payment information to credit bureaus (we currently report to all three major credit bureaus). There has been some concern about what a credit bureau can do with a borrower's information. A borrower has the right to prohibit a credit bureau from using information in the borrower's credit record in connection with any credit or insurance transaction not initiated by the borrower. The borrower may exercise this right by calling 888/567-8688, Option 2.
We are not requiring you to take any action, but hope that you may consider passing this information on to your students. The Direct Loan Servicing Center will also be adding similar information to our Welcome Letter in the future. If your students have additional questions, please have them contact Direct Loan Borrower Services at 800/848-0979. Thank you for your ongoing partnership in the Direct Loan Program.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel