How To Write a Student Loan Goodwill Letter for a Late Payment

More than 1 in 3 student loan borrowers have missed a payment, according to a 2023-24 Consumer Financial Protection Bureau survey. If you've fallen behind on your loans, you're not alone, and there may be a way to lessen the impact.

A student loan goodwill letter is a request to your loan servicer asking them to remove a late payment from your credit report. While there's no guarantee your request will be granted, it's a low-risk option that could help repair your credit after a temporary setback, such as job loss, a medical emergency, or other hardship.

In this guide, learn how to write a goodwill letter for missed student loan payments, what to include in your letter, and what to do if you're denied. We'll also walk through an example goodwill letter to help you get started.

What is a student loan goodwill letter?

A student loan goodwill letter is a written request asking your loan servicer to remove a late payment from your credit report.

You might send one if you missed a payment due to extenuating circumstances, such as a medical issue, divorce, natural disaster, or other type of emergency. These letters are most effective when you've otherwise made payments on time and the issue is a one-time mistake.

Removing a late payment could help improve your credit score, but approval isn't guaranteed. Loan servicers aren't required to accept goodwill requests, and some, like Aidvantage and Nelnet, have policies against them.

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When should you send a goodwill letter?

Timing matters when it comes to sending a student loan goodwill letter. Before you reach out, make sure you've caught up on any missed payments and are back on track with consistent, on-time payments.

“It's advisable to draft a goodwill letter once the financial issues that led to the negative remarks on the borrower's credit score have been remedied,” says Leslie Tayne, a financial attorney and founder of Tayne Law Group. “This could look like three to six months of on-time payments, or a payment that brings the borrower's account current.”

If the late payment was a one-time mistake — caused by an oversight, hardship, or error — and you've maintained a strong payment history before and after, you may not need to wait.

“A goodwill letter is more likely to get approved if the missed payment is an isolated incident in a proven track record of on-time, consistent payments,” explains Tayne. “In this case, it may be advisable to submit a letter as soon as possible, describing the incident that led to the missed payment and asking for leniency.”

What to include in a goodwill letter

Since goodwill requests are reviewed on a case-by-case basis, it's important to make your letter as strong as possible. The more clear and complete your explanation, the better your chances.

When writing a student loan goodwill letter, keep the tone professional and be sure to include:

• Your name: Use the full name listed on your student loan account (avoid nicknames).
• Your account information: Include your student loan account number to help the servicer locate your records quickly.
• Date of the missed payment(s): Be specific about the date you missed the payment, so your loan servicer can verify the issue and respond accurately.
• An explanation: Share why your payment was late. Be honest and specific. Whether it was a hospital stay, family emergency, or another hardship, this is your chance to explain the situation.
• The request: Politely ask your loan servicer to consider removing the late payment from your credit report.
• Reassurance: Acknowledge the mistake and reassure and reaffirm your commitment to making on-time monthly payments going forward.
• Gratitude: Thank the servicer for reviewing your request and taking the time to consider it.

See Also: How Student Loans Affect Your Credit Score: The Good and the Bad

Example goodwill letter

Here's a sample student loan goodwill letter template you can use and modify:

What to expect after sending your letter

Once you send your student loan goodwill letter, you'll need to wait for a response. Some loan servicers reply within a few weeks, while others may take longer or not respond at all. In the best-case scenario, your request is approved, and the late payment is removed from your credit report. However, approval isn't guaranteed.

If your letter is approved, Rosario Chacón, a certified student loan professional (CSLP) and founder of Wealth-Source Financial, recommends checking to see if the credit bureaus have updated your information in the next 30 to 60 days.

“If your petition is denied, consider calling them, explaining your special situation; hopefully, you will speak with someone willing to direct you for a second look,” advises Chacón.

Unfortunately, some letters are denied due to company policies, limited staff, or other internal reasons.

“It's more common for goodwill letters to be denied than approved, as loan servicers often have strict policies in place regarding reporting accurate data to credit agencies,” adds Tayne. “Some creditors also have policies not to accept goodwill letters at all due to regulations.”

If the late payment listed on your credit report was a mistake, there's another option.

“If the late payments are erroneous (i.e., it shows good standing with the lender, yet the bureau is showing late payments), you can dispute the error directly with the credit bureau,” says Chacón.

Here are the three major credit bureaus where you can file a dispute:

• TransUnion
• Equifax 
• Experian

Tips to improve your credit

If your student loan goodwill letter is denied, it can be disappointing, but there are still ways to improve your credit over time.

“My best piece of advice for student loan borrowers whose goodwill letters are denied by their lenders is to continue to establish consistent and healthy financial habits, which will improve your credit score in time,” says Tayne.

To get started, you can:

• Enroll in autopay: Signing up for automatic payments is the simplest way to avoid future late payments. Some loan servicers will also lower your interest rate by 0.25 percentage points when you sign up.
• Monitor your credit reports: You can access all three of your credit reports from Experian, TransUnion, and Equifax through AnnualCreditReport.com. Look for any errors or changes.
• Get support: If you're struggling financially, ask your lender or loan servicer about forbearance options so you can temporarily put your payments on hold. If you have federal student loans, you may be able to enroll in an income-driven repayment (IDR) plan to make your monthly payments more affordable.