Metro 2 Creditor Classification 07: Educational

Specification

Code	07
Meaning	Educational
Field	K1 Creditor Classification (Field K1-4)
Record	K1 Segment (Original Creditor Name)
Length / position	2 chars · 33–34
Category	Government and Education
CRRG reference	CRRG Creditor Classification code table (K1 Segment)

Covers unpaid tuition, housing and institutional fees owed directly to a school, institutional or campus-based loans, and student loans generally, whether federally backed or privately originated.
Choose 07 over 04 (Government) for student loans even where a government programme originated, guaranteed, or held the loan. The education classification tells the consumer more, and student-loan tradelines have their own reporting conventions the classification should point at.
Choose 07 over 12 (Financial) for a private student loan. The lender may be a finance company, but the loan's character as education debt is the more useful fact on a K1.
Does NOT cover ordinary consumer training or tutoring services bought from a commercial provider. Those are personal services (05).
Does not signal deferment, forbearance, or in-school status. Those are carried by Account Status, Payment Rating, and Special Comment, not by this field.

1A collection agency reports an unpaid tuition and campus-fee balance placed by a university's bursar office.
2A servicer furnishing a defaulted student loan appends a K1 naming the originating lender.
3A debt buyer purchases a portfolio of institutional loan balances from a closed private college.
4A collection attorney reports unpaid room-and-board charges owed directly to a school.

Name the school or the originating lender on the K1 in the form the borrower would recognise, not a loan-programme code.
Prefer 07 to 04 for anything that is fundamentally a student loan, including federally guaranteed loans.
Preserve the original loan's Date of First Delinquency through default, assignment, and transfer. Student-loan histories move between servicers frequently and this is where the date gets lost.
Do not reclassify a defaulted student loan as a collection-industry classification simply because a collector now furnishes it. The classification describes origination.

A file can be structurally valid and still be wrong. These are the cross-field conditions Creditor Classification 07 has to satisfy.

Report only on a record that carries a K1 segment. For student loans that means a servicer, guaranty agency contractor, collection agency, or debt buyer is the furnisher.
Pairs with Base Segment Account Type 48 (Collection Agency/Attorney Account) when tuition or a defaulted balance has been placed for collection.
Portfolio Type I (Instalment) is the norm for student loans, with Terms Duration and Terms Frequency populated. Unpaid institutional charges with no loan contract behind them are usually O (Open).
Where the loan was sold rather than merely transferred for servicing, the K2 (Purchased From / Sold To) segment records the counterparty. A servicing transfer alone is not a sale and does not by itself call for a K2.
Date of First Delinquency and Date Opened both belong to the original loan. Neither resets on assignment to a guarantor or on sale.