Metro 2 special comment code AL: student loan assigned to the government
A student loan was permanently assigned to the federal government, which typically happens after a default when the holder turns the loan over. From then on, the government or its collection contractor manages the debt, and the original holder's tradeline should close out with nothing owed to that holder.
Sources describe this code with some variation. Public documentation doesn't agree on every detail of how special comment code AL is used, so treat this as a general explanation. If it's on your report, the company that reported it can tell you exactly what it meant.
How it shows on your report
A remark like "Student loan permanently assigned to government."
How it affects your score
The default behind the assignment is a serious negative.
What to check
The original holder's tradeline should show $0 once the loan moved, and the government or its servicer should report the balance. Check that both don't show the same open balance, and that the move didn't reset the delinquency date.
If this code is wrong on your report
- Metro 2 explained: the data format behind your credit reportHow lenders send coded data to the bureaus, and how disputes travel back to them.
- How to dispute a credit report error, step by stepA step-by-step guide to disputing credit report errors with Equifax, Experian and TransUnion: online vs. mail, what to include, and how to keep proof.
- Letter builderWrite dispute, goodwill, validation and identity theft letters. Free, printed by you, sent by you.
Glossary: special comment code, Metro 2
Sources
- Special Comment Codes (The Mortgage Office help center)
- Special Comment Code (GoldPoint Systems CIM GOLD documentation)
These explanations are ScoreTuner's plain-English summaries. The official specification is the CDIA Credit Reporting Resource Guide, which is copyrighted and not reproduced here. This is education, not legal advice.