topic Re: Student Loan question in Understanding FICO® Scoring

Student Loan question

Anonymous — Tue, 20 Mar 2007 13:24:02 GMT

My husband took out $40k in student loans in the early 90s. He paid for a couple years and the loan was transferred. Over the past ten years the loan has been serviced by five different lenders.

He lost his job and was having trouble making payments so he asked for a deferral. Before it was granted he had two months of late payments. I just ran his reports and that one $40k student loan is showing negative marks from all five vendors. Is there anything that can be done about this?

Not if it's accurate. Student loans must report (a requir...

Anonymous — Wed, 21 Mar 2007 00:44:31 GMT

Not if it's accurate. Student loans must report (a requirement of the higher education act).

If you're going through troubling financial times, it's always good to note that student loans can be deferred by enrolling at least half-time in a community college (and there are community colleges that have sufficient online courses that there's no logistics challenges to enrollment).

Student Loan rehabilitation

JMD — Thu, 22 Mar 2007 23:19:41 GMT

Defaulted student loans can be rehabilitated. If you make 12 monthly payments on time, the loan is sold to another lender and the default is taken off your credit report. If you google "student loan rehabilitation" you can get the information you need.

Re: Student Loan rehabilitation restated

Anonymous — Tue, 12 Jun 2007 06:10:24 GMT

Big bump.

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

Re: Student Loan question

Anonymous — Tue, 12 Jun 2007 13:11:38 GMT

Student loans are the biggest waste ever

Re: Student Loan question

Anonymous — Tue, 12 Jun 2007 20:04:18 GMT

Jack_Sparrow wrote:
Student loans are the biggest waste ever

How do you figger that?

Re: Student Loan question

Anonymous — Tue, 12 Jun 2007 20:42:14 GMT

Never mind the troll. There's obviously no financial savvy behind that comment. Even people who don't need student loans can benefit greatly from them. This was especially true when rates were incredibly low (mine are being paid back at 3.1%, so believe me I'm in no hurry). Especially in a credit forum, that makes no sense. Just think about it: it's one of the best ways for young people to establish credit as well.

Re: Student Loan question

MidnightVoice — Tue, 12 Jun 2007 20:52:52 GMT

It also seems one of the easiest ways for young people to screw up thier credit if they are not careful

Re: Student Loan question

Anonymous — Wed, 13 Jun 2007 04:39:44 GMT

No argument there, but anyone who isn't careful will have all kinds of opportunties to screw it up. Credit opportunities are far more widely available now than they were when I graduated about 10 years ago.

But think about the benefits, simply from a credit standpoint. Acceptance is essentially guaranteed by law, and having a term of potentially 10+ years is great for average age of accounts. If the young person has any difficulty, deferments and the like are available to give the borrower a chance to catch up without taking a credit rating hit. And that's just for starters.