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Subsidized Student Loan

Valued Member

Subsidized Student Loan

I am sure this question has been asked before but I couldn't find anything in the forums.  Does a subsidized student loan improve on your credit score while you are still in college?  The subsidized loan doesn't have to be repaid till six months after you finish college so would it still help my credit score now or would it only say that I have a student loan installment?

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Valued Contributor

Re: Subsidized Student Loan

It will appear on your credit report now with the notation that it is deferred.  When the account is first opened, you may see a slight decrease due to have a new account and your average age of accounts dropping, but as it ages, those dings will go away and it will gradually improve your score.  Deferred loans report basically the same as in-payment loans, each month you should see a good mark, and the notation "Pays As Agreed."

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Valued Member

Re: Subsidized Student Loan

Thank you SCF for the information.

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