Student Loan Multiple Disbursement vs... One Entry

kisbel65 · ‎03-03-2012

Hello everyone,

I hit the 700 club today with Transition (704 t o be exact). I am very excited, but have a question about my Equifax report (689). I pulled a report today from FICO and I saw a difference in how my student loans are being reported. Before I only had one entry on my report for my graduate student loan (I am in deferment until I graduate in 2013), but now I have multiple entries for each disbursement made. My report looks like I took out multiple loans, instead of one loan. I contacted Equifax and they said that is how they record loans now. I wanted to know if this type of reporting can have a negative impact on my score? I am looking into consolidation, but do not qualify. The information I received from the DOE consolidation dept (that handles the president's offer for loan consolidation) is that I have to have one loan from the DOE and another loan from a commercial lender (e.g.., ACS, Sallie Mae etc...).

Thank you

laz98 · ‎03-03-2012

I've heard a lot of people with Direct Loans have had this happen. Since they are not brand new loans suddenly appearing all at once on your reports, you are probably fine. You still owe the same amount of debt; you just have more positive accounts reporting now. In the long-term, it will be a very good thing for your average age of accounts.

Anonymous · ‎03-09-2012

The only way this would hurt you is if you are not paying in a timely manner on your loan. Not sure why they switched to reporting in this way, but as long as you are paying your bills when you need to or keeping up the requirements for your payment deferment, you should be fine. Good for you for noticing and worrying- that shows you aren't the kind of student loanee to get blind sided by hidden fees or large surprise APRs.

kisbel65 · ‎04-21-2012

OP here: Thank you for your responses.

Another thing that I notice about my Equifax report was that when I ran a simulator is suggested I consolidate loans. If having multiple entries does not impact my score, why would the simulator suggest a consolidation?

Thanks again.

laz98 · ‎04-21-2012

@kisbel65 wrote:

OP here: Thank you for your responses.

Another thing that I notice about my Equifax report was that when I ran a simulator is suggested I consolidate loans. If having multiple entries does not impact my score, why would the simulator suggest a consolidation?

Thanks again.

Sorry, What I should also have said is that you mght get a ding for having multiple accounts with balances with this new reporting. As I said before, you technically still owe the same amount of debt (well, maybe less now, since time has gone by!) even though the way the account is reported has changed. So you're probably getting a suggestion for consolidation for that reason, although I don't know what simulator you are using or what kind of advice it gives.