Student loan borrowers may benefit from credit repair

A recent report found an increasing number of students are struggling to meet their education loan obligations.

The Institute for Higher Education Policy's report, which was based on data from five of the biggest student-loan agencies in the United States, found 40 percent of individuals with student loans become delinquent within five years of starting to pay back their debt, The New York Times reports.

The report also learned only 37 percent of student loan recipients who began paying off their balances in 2005 have been able to fulfill their education debt obligations.

For a number of these individuals, having a delinquent mark on their credit reports will inhibit their ability to secure loans with low interest rates. However, since creditors can legally revise their credit reporting at any time, consumers who are able to demonstrate responsible repayment of their student loans after the initial blemish may have a case for removing such negative marks from their credit reports in certain circumstances.

Some student loan borrowers may benefit from contacting a credit repair company and informing them of their credit problem. A credit repair attorney may be able to work with the credit bureaus on a person's behalf to explain that the delinquent mark suffered years ago is now unfairly hurting the individual's loan eligibility. In some cases, the reporting agencies may remove the blemish, helping individuals return to a clean credit standing.