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12-23-2012 12:28 PM
I got an email about 2 weeks ago telling me that my US federal loans will now be serviced by Nelnet. It was a little odd and surprising to me, but I thought it wouldn't affect or change anything.
Fast forward to right now. I just logged into CreditKarma, and it showed my FAKO dipping quite significantly, to my surprise. I then found in their breakdown that all of my student loans (all deferred and in good standing, as I'm still in school), have been closed. Now my average age of accounts that WAS nearly 2 years, and my oldest tradeline being over 2 years, are each just 0 years and 1 and 2 months, respectively.
Is this normal? And will this have a negative effect on my real credit score/shot at getting cards or loans in the future? I'm not quite happy about this change, as I didn't know it was coming.
12-23-2012 04:44 PM
I think Credit Karma only takes into account your open accounts when calculating your AAoA, so I think that's all it is. FICO doesn't do that. Your AAoA will take a drop, though, when the new accounts open.
12-23-2012 06:07 PM
Laz98 is right-
I am still in school but I consolidated through Federal Direct Loan about 6 months ago and my score did not change. I didn't look at whether the average length of open accounts had changed, but I did notice that all of the closed accounts are listed as "Paid in full, closed, never late" which is nice. Let us know if you see a shift. I will be interested to hear how that progresses!
12-23-2012 06:08 PM
Sorry I should have said- Nelnet also took over my loans at the time of consolidation. So I have the same servicer and everything and my score didn't change as a result of that.
12-23-2012 09:06 PM
Okay thank you. I was just surprised because I never requested any changes, they just did this on their own. I will be graduating in May, and have a few credit cards (all very new) so I'm concerned that the student loan accounts, which were my biggest and longest providers of history, are now considered new accounts. Though closed accounts stay on for 10 years AFAIK.
Thanks for the reassurance.
12-24-2012 09:21 AM
If you have any questions for us now that your loans have transferred to Nelnet, please don't hesitate to ask. If you believe that something is showing on your credit report in error, we may be able to make adjustments. Our customer service line is open 24/7 for your convenience at 888.486.4722. - Sarah
12-24-2012 11:38 AM
The same thing recently happened to me. The government bought my loans from the previous lender and now everything is held by Nelnet. Which as far as I am concerned is awesome because they are SO helpful. Not to mention there are different repayment options available including loan forgiveness for public service.
My credit score was not affected by the change.
Hope this helps!