03-26-2009 08:12 PM
04-07-2009 07:16 AM
04-23-2009 07:05 AM
I've had to do that a few times in my past, and it always reports "pays as agreed" and doesn't show as late. It may not show a dollar amount, but I'm not sure if it did before anyhow. If the lack of a dollar amount does affect the score, my guess is that it would be negligible, but I'm almost certain it has no negative effect on your credit score.
I can tell you though to triple-check that the forms were received when you send them, because I had paperwork get 'misplaced' so I was reported late before the forebearance on one occasion - that did ding my score.
04-23-2009 07:28 AM
04-23-2009 07:33 AM
While owing more may indeed affect the score, they can not report you as in default for being in forebearance, that's wholly incorrect. I consulted past years' credit reports before replying to this. If they were to report it as you say, she could have it amended because default, by definition, means not in agreement with terms. Forebearance is a modification in terms which the lender has accepted, ergo IN agreement with tersm.
If she is facing 200K in loans and just getting out of med school, chances are the payment EVEN AFTER consolidation would be too much, and once you do consolidate, you do not get to forebear or defer again. It's a high-risk strategy with a permanent impact, where LauraK needs a temporary fix until things are better.
You should never stay in forebearance for too long, but consolidation, when cash flow is tight, is NOT the right move in this situation. You do want to consolidate as soon as you know you will be able to make the payments, but not if you do not know how you will make the payments yet!
04-23-2009 12:19 PM
"once you do consolidate, you do not get to forebear or defer again."
THIS IS NOT TRUE ON FEDERAL LOANS(Staffords, Perkins, etc..!PRIVATE LOAN CONSOLIDATION IS ANOTHER STORY
While I was in med school I consolidated my federal loans when interest rates dropped back in 2004/2005 to then historic lows. After I consolidated they were put immediately back into deferment until I graduated med school. Now the loans are in forbearance and they are consolidated loans.
WORD OF ADVICE TO ALL:
Dealing with the federal governement is the best concerning loans. Always consolidate using the Dept of ED as your servicer and don't consolidate thru private companies under the fed program where a private company is the servicer. FEDS let you do your forbearnc/deferment paperwork online and they approve it within a couple of days compared to private companies. I know alot of med school friends that had a nightmare with private servicers. The FEDS do some things right! LOL
04-23-2009 12:23 PM
04-23-2009 02:00 PM
Thanks OTF - I meant forebearance only, deferment due to school I believe was still OK. That was the case with federal loans too when I worked at the university back in 2003 and also when I finally consolidated back in 2005. If I go back to school taking a minimum of 6 credits I can defer (not the same as a forebearance, where your subsidized loans still accrue interest but in a deferment they do not [rather the gov't pays it]).
Also excellent advice about who to consolidate with - there are some major scammers out there.
This is the website for Direct Loans:
They have info on forebearance, deferment, rates, etc.
It is possible that things have changed since I worked in a university setting, so best to check it out yourself. But, back to the original question, they can not report you as defaulting if you are in either of those two because you are "paying" according to terms - the terms are simply that you have a "net 360" or something instead of a "net 30".
04-23-2009 09:02 PM
04-25-2009 01:23 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.