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No. of Recommendations: 5
The only thing I actually saw was a screenshot showing the score history and the three factors that were listed as high impact. Those show: Payment history 100%, Credit card utilization: no data, and Derogatory remarks: 0. The score dropped 74 points suddenly.

Since the derogatory remarks are 0, then she hasn't been dinged for a late payment. However, the fact that her loan balance didn't drop as it has been, and therefore, was expected to, marks a break in the trend, and it's not in the right direction. Models don't like trend breaks. So that may very well be the issue.

If that's the case, then it's not that the student loan servicer said she was late, it's that her balance didn't decrease as it was expected to. The CARES Act https://www.congress.gov/bill/116th-congress/house-bill/748/... says (my bolding):

SEC. 3513. TEMPORARY RELIEF FOR FEDERAL STUDENT LOAN BORROWERS.
(a) In General.—The Secretary shall suspend all payments due for loans made under part D and part B (that are held by the Department of Education) of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.) through September 30, 2020.

(b) No Accrual Of Interest.—Notwithstanding any other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), interest shall not accrue on a loan described under subsection (a) for which payment was suspended for the period of the suspension.

(c) Consideration Of Payments.—Notwithstanding any other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), the Secretary shall deem each month for which a loan payment was suspended under this section as if the borrower of the loan had made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized under part D or B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.) for which the borrower would have otherwise qualified.

(d) Reporting To Consumer Reporting Agencies.—During the period in which the Secretary suspends payments on a loan under subsection (a), the Secretary shall ensure that, for the purpose of reporting information about the loan to a consumer reporting agency, any payment that has been suspended is treated as if it were a regularly scheduled payment made by a borrower.

If there was no late payment mark, then from a reporting standpoint, the loan servicer reported it correctly. It doesn't say anything about the credit score - just the credit reporting. So even though her score dropped, she may not be able to dispute it unless she's willing to sue the 3 credit bureaus, since they are the owners of the Vantage Score 3.0, which is the scoring model that CreditKarma uses.

AJ
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