Is it normal for a student loan to report as a line of credit? I have one that is "closed at request of grantor" with a limit of 45k and a high balance of 55K (due to be deferred with capitalized interest for 2.5 years after I finished school).
I have two variable rate loans (this one) and another (that just transferred to Navient :[ ), where the interest rate has increased an entire percent over the just one year! I'm afraid to see how high it will go if i keep waiting so I'm considering refinancing them both into a fixed rate with SoFi or something similar.
So my question is, is this type of reporting normal and is it hurting my score. I did some prescreen offers and while I can lock in the rate I'm looking for, the payment is much higher and repayment term is shorter. From month to month things are fluctuating a lot (lending club was offering me a 7% loan a month ago, i waited too long, and now it's a 11% offer for the same amount).
Any advice would be great, I'm contemplating moving the loan now, or waiting a few months until (Sept/Oct) where I can pay off a lump some of some CC debt with my bonus (about 3K-5K).
I'm also considering using this time gap to maybe write some good will letters to see if I can get some late payments removed form 2014, one each with Navy visa card, Amex, and Chase student loan. I haven't been late since then in 3 years so I'm hoping they will consider and that will help as well.