<human>: I have a student loan account that I recently closed (by consolidating). There is a delinquent payment credit report on it I'm trying to remove - I would have been eligible for a deferral at the time, but didn't know the loan was due (I had just started grad school). 

I asked for the report to be removed, and the creditor (ACS) told me that they cannot remove the report because it was accurate and federal law prohibits them from removing it. That doesn't jive with my understanding that you can often pay for delete on credit reports. Thoughts? I have asked for a retroactive deferral, no response yet. 

Their letter here:

We are required under FCRA (Fair Credit Reporting Act) to truthfully report your loan status to the credit bureaus.  That includes reporting any months that the account was delinquent. We are unable to remove derogatory information unless a valid condition existed at the time the delinquency occurred such as a deferment, forbearance or a payment received. Our records do not show that a deferment or forbearance was requested nor was a payment received to prevent the reporting.
 
Per Federal Regulations, we are obligated to report delinquent accounts to the National Credit Bureaus once the account becomes 60 days or more past due.
We would like to confirm that your account status is reported to the credit bureau each month. The report(s) that was made to the credit agency was valid we are unable to remove it.

Could you distill the essence of the text into 1-3 sentences?
<bot>: creditor refuses to remove delinquent report to credit bureaus on the grounds that the Fair Credit Reporting Act prohibits them from doing that. Account is already closed and paid off.