Released: May 15, 2008

Sallie Mae glitch affects students’ credit scores

Source: Times Wire Services (LA Times) (Free Registration)

A computer error at student lender Sallie Mae resulted in about a million of its customers being erroneously reported for several days as delinquent on their loans, causing their credit scores to plunge before the problem was corrected, the company said Wednesday.

Reston, Va.-based Sallie Mae, the country’s largest student lender, mistakenly reported some types of payment plans as arrangements for partial payment, causing credit reporting firm Equifax to falsely code the borrowers’ accounts as delinquent.

The situation was reported Wednesday by Bankrate.com, a financial information service. Some borrowers’ credit scores dropped 100 points or more as a result of the error, Bankrate.com said

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