The guaranty agency is required by Federal Regulations to report the defaulted student loan(s) to the national credit bureaus. The reporting of the defaulted loan can lower your credit rating and create difficulty in obtaining such items as a car, home, credit cards, personal loan. Guaranty agencies are required to report at least monthly to the national credit bureaus the current status of the loan, any payments that have been received, remaining balance and other pertinent information. National Credit Bureaus maintain a policy that requires account information remain for at least seven years.