Turned down for student loan for past paid collections. Can I get them removed?

I recently applied for another Student Plus Loan for my son. I have done this with two sons for several years without incident. I was shocked when I was denied the loan for this scholastic year. The agency here in NH sent the denial letter to me. I called to ask what the problem was and they indicated that Transunion had reported two items from Collection Agencies on my report from 2005. I didn’t know they were even there, (MY BAD). They also were able to tell me that they were both medical service items and that both had been paid off within 3-4 months of going to collections. I was also told that because of some government rule changes or this scholastic year, they were not able to overlook the items as had been done unbeknownst to me in 2005 and 2006, and grant the loan.
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Are you saying you paid them off and there is no balance now and you still cant not be approved.
Or
that you thought you paid them all off and they are not paid off.
OR
because you have a paid collection you can not be approved?
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The first then there is nothing you can do.

The second go here and use the debt validation letters.

The last then there is not much you can do. Once a collection has been paid there is no reason for the creditor to remove or negotiate.
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I paid them off in 2005 shortly after they went to collections. Now Icannot get approved for the PLUS loan due to a change in policy thatdoes not allow approval if there is any items that went to collectioneven if it has been paid off. Why wouldn't the creditor be willing toremove the item from the report? Is there a cost to him to do this?
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Because you made them collect.
It is a fact, that goes into your credit file.
None will talk about paid files.
Negotiate before you pay. I guess you will rememeber that one.
There is a labor cost. But why would they take it off? There is no good reason.
Some would argue it would be lying or illegal to take it off.

Creditors have tightened credit rules you know. House market and all.
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Thanks for the quick responses. I certainly will remember this one.Now I have to figure out a way to keep my son in school.
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Sorry.
you can dispute them and hope
www.oskie.com/credit-dispute.htm