topic Re: Student Loans in Understanding FICO® Scoring

Student Loans

Anonymous — Tue, 20 May 2008 17:04:33 GMT

If my student loans, which are not in default, are being reported as being in forbearance does that negativley effect my fico score? I have had the loans since 2002 and have never been late but I recently requested a forbearance. Thanks for the help.

Message Edited by loloswims on 05-20-2008 10:04 AM

Re: Student Loans

Anonymous — Tue, 20 May 2008 19:51:44 GMT

I must admit I'm not sure about loans in forbearance.

But I have seen CRs with SLs in deferment and they are in the "satisfactory" category. This is because the loan payments are not due yet, so the student borrower hasn't had the opportunity to pay late or default.

Perhaps someone else can chime in here ...

ETA: Whoops, I didn't even answer your question. But if the TL is "satisfactory" I wouldn't think that the deferment would have a negative effect on the FICO score. Again, I can't be sure about forbearance.

Message Edited by masdeocho on 05-20-2008 03:51 PM

Re: Student Loans

Anonymous — Tue, 20 May 2008 20:05:42 GMT

I had loans in forbearance a few years ago. I was 8 months out of college and working at Burger King. It did not impact my credit report, as they were reported as paid as agreed/satisfactory once in forbearance. Maybe things have changed since then. You probably already know this, but keep paying until you receive the actual forbearance acknowledgement from your loan officer or it will bite you in the rear. I had three separate loans and mistakenly thought all were in forbearance. This was in 2001. One was not, of course. I still have one that says paid 30 days late. I can't wait until it comes off this year! I'm going to have a kegger to celebrate the end of my post-college financial woes... (Thankfully it is only reported now on my TU.. but it is keeping that FICO at 732 while EQ and EU are greater than 760.)