if you have no lates does outstanding student debt lower your score a lot?

[danny4l]

My lates will be removed in 2017.  At that time, I will have over 120000 in student loan debt outstanding.  I don't think I will pay that off for at least 15-20 years so how is my score going to look even though I will have no lates or anything else but just the outstanding debt?

Is it still possible to have 750 plus while you are carrying 1200000 of student debt?

[pakman92]

Outstanding debt, surprisingly has little effect of the score.  It is about how you have met your deb obligation through prompt payments.  Having said that, a lot of outstanding revolving debt (credit card) will impact your score some.

If I was in your shoes, I would concentrate on paying on time and getting the revolving debt down.  

[danny4l]

so if I am still carrying that student debt but I have no lates, no derogatory accounts, and no accounts with balances, you mean I can still have an excellent credit rating?

[llecs]

Yep, installment loans are viewed on par with mortgages, auto loans, etc. There are plenty of folks with 800+ FICOs with $100k-$500k+ in installment debt. It's a tiny aspect to FICO scoring. To hit those high FICOs though, you would need a good mix of credit which would include at least 2-3 CCs with balances in check. And a long history too.

[danny4l]

this is very good news.  I always thought that you couldn't have an excellent credit rating with any outstanding debt.

[GST2008]

My scores are in the low 700s and I recently graduated with 225k in loans (it hurts me to type that number).  Hopefully they will be in the mid 700s later this year once I pay down a CC or 2 that are a bit higher than I'd like.  When I run the score simulators, the student loans are never an issue, I get messages saying I should add a mortgage and have a higher AAoA.

[danny4l]

This is all good news.  Just yesterday, I was thinking that my financial life would be ruined for another 20 years or so due to my student debt.  Now in only a few years, once the derogatories fall off my report, I think I can really start the rebuilding process.  That's a good feeling.

[pakman92]

---

@danny4l wrote:

This is all good news.  Just yesterday, I was thinking that my financial life would be ruined for another 20 years or so due to my student debt.  Now in only a few years, once the derogatories fall off my report, I think I can really start the rebuilding process.  That's a good feeling.

---

Rather than taking our words for it.  You should pull a score form here (Equifax) and see for yourself.

[Anonymous]

---

@GST2008 wrote:

My scores are in the low 700s and I recently graduated with 225k in loans (it hurts me to type that number).  Hopefully they will be in the mid 700s later this year once I pay down a CC or 2 that are a bit higher than I'd like.  When I run the score simulators, the student loans are never an issue, I get messages saying I should add a mortgage and have a higher AAoA.

---

I hope you got a MD for that much money.  Even if I go to a private law school, when I combine all of my present student loans with potential future loans my undergrad, MBA and JD will be around 150k

[GST2008]

Doctorate in psychology, but that figure includes: 4 years of undergrad, 4 years of grad school for a Master's and certificate of advanced study, and then 5 years for a clinical doctoral program.  I should be able to get most of it forgiven though :

Plus, now that I have a doctorate if I teach as an adjunct, I can take courses for free.  I plan on adding an MBA to my collection as well in the future.