06-27-2013 07:31 PM
I just received an email informing me my Federal Direct student loan was being transferred to myfedloan. I am currently in the process of applying for a mortgage and wonder if this "transfer" will impact my credit.
I currently have scores in the 800's and have never been late on any payments. I am wondering if my current student loan accounts will close (my longest account for credit history), and a new ones will open-- thus lowering my score.
I'm hoping the transfer is just that- a transfer in who I make my payments to, and not impact my credit report. Since all of this is involuntary, it seems like it shouldn't affect me. Anyone experienced this before? Any information would be greatly appreciated. I am really worried this is happening right now.
06-28-2013 09:39 AM
Your closed loan accounts will continue to positively affect your scores for up to 10 years from the closed date. The new loans accounts will have the same originating date as the old loans. You should not see a significant score impact. In fact, you will be stronger in the long run with additional positive loan accounts into the future. Please report back with any score change after the new loans report. I believe you'll be totally fine and not see much change though.
06-28-2013 10:49 AM
I'm not so sure all of the federal loan servicers backdate. Great Lakes seemed to say they don't backdate and only report one account for me (Versus 9 I had) in their email response to my inquiry. To be honest though, their letter was full of generic "We follow the FCRA blah blah blah" crap so it was incredibly hard to get a straight answer out of it. My question was worded in the simplest way possible with an example to answer and they ignored it.
They haven't reported yet so I guess I'll see. I do agree that the OP likely won't see a large score change though.
06-28-2013 02:27 PM
I think the grouped reporting is technically incorrect. If that new loan with the new servicing agent shows a more recent open date, I am pretty sure that is a FCRA violation.
While the payment histories won't be duplicated for dates prior to the transfer, the new account opened dates should be the same. They are for the many times my graduate loans have been sold.
07-09-2013 10:22 AM
Hi! I had 7 being transferred to myfedloan. I actually was happy it landed all in one account.My credit score never changed.
07-11-2013 09:44 AM
Same thing happened to me and I too am in the middle of buying a house. The transfer is complete to fedloans but they have not reported the new loans to the credit bureau. I am anxious to find out what happens.