I stopped paying my federal student loans for 4 months (ugh so much regret), and had them put into retroactive forbearance so that they were brought current. I started paying again in January when the forbearance ended.
Today I checked my credit score and saw that over $1,000 of interest was added to the loans and it dropped my score by over 100 points! This happened because unpaid interest from forbearance was capitalized. My loan was already around $40,000 so it's not like my debt was tiny to begin with. While I was not paying my loans, my score was in the 500s. When I brought them current with forbearance it went up to the 600s. Then today it is back in the 500s! I have no negative items on my score that would have done this - in fact I just paid off about 20% of my credit card debt this month.
I talked to someone at FedLoan and they said that the added interest should not have brought my score down but wasn't any help beyond that. I have no idea what to do and I'm freaking out because my score was finally creeping back towards a decent number, and now it's horrible again. Any advice would be much appreciated. Is there anything I can do?!
Also - does anyone know if you can get the "late" marks removed from your credit report, since the accounts were put into retroactive forbearance?
