in grad school- how do payments made during deferment report to CRA?

[Anonymous]

Hi everyone,

Googling this question just brings up general info about deferment. I have worked full time at my employer for about 6.5 years. I'm just going to grad school half time, so my student loan status is in deferment. That being said, I can afford to pay off the small student loan (about 6.7k) soon, but I wanted to log some positive installment loan activity. Additional, student loan interest isn't such a bad thing and it's lower relative to my auto loan.

Because I am in school, my status is automatic deferment. I could request the loan to come out of deferment, but if I can just keep it in deferment and make payments, I'll do that. Will my payments report the same way, or would it be advantageous to bring it out of deferment since I can afford.

Info on loan:

Servicer is FedLoan Serviving

about 6.8%

6.7k

I'm not taking additional funds for school. My work reimburses me and I have the cash to pay for grad school.

Thanks all! 

[SCF]

Loans in deferment report "pays as agreed," just like an active loan that is being paid on time.  The only difference may be a comment on the loan status indicating that it is in deferment, and the payment amount may also show as $0/month (this isn't consistent across all servicers and CRAs, but most of them report this way).  This means that you decision to make payments should be a financial one, because it won't have a notciable impact on your credit score.

If you have a higher interest auto loan, pay it down first with the extra funds that you have.  Once you've taken care of higher interest debt, you can make payments on your student loan at any time without taking it out of deferment.  The only "harm" to leaving a loan in deferment as long as possible is that interest continues to accrue (unless the loan is subsidized).

[Anonymous]

I concur as well!

Deferrment is considered "PAID AS AGREED." The only benefit of making a payment is that you are decreasing your debt. I was also advised that I should try to pay off any other higher interest loans first while student loan is in deferrment. Once it come out of deferrment, then there are no other option. 

[Anonymous]

Thanks, that makes perfect sense! I'm going to attack my auto loan instead.