topic Re: Question regarding paying student loans while in school in Student Loans

Question regarding paying student loans while in school

Tischer712 — Tue, 20 Dec 2011 20:22:16 GMT

I currently have 22k in student loans, I was considering starting to make payments on them while in my last semester. My question is will it help my credit score by putting them to pays as agreed instead of current/Deferred. Just looking for a small score boost before apping for a mortgage.

Re: Question regarding paying student loans while in school

laz98 — Wed, 21 Dec 2011 04:30:56 GMT

i think as long as you are in school, your loans will say "in school/deferred" even if you are paying on them. it never changed any of my statuses. even if it did make a difference, i don't think it would make THAT much of a difference in your score to bother with it. good luck with whatever you decide!

Re: Question regarding paying student loans while in school

MarineVietVet — Wed, 21 Dec 2011 04:36:27 GMT

I must say that laz98 knows much more about the topic of student loans than I ever will and so I don't say much on this board.

But I will point out that the more you can pay on these now the less you will owe when you graduate. Less debt is always a good thing!

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Question regarding paying student loans while in school

laz98 — Wed, 21 Dec 2011 04:54:15 GMT

@MarineVietVet wrote:

But I will point out that the more you can pay on these now the less you will owe when you graduate. Less debt is always a good thing!

so true! especially since student loans seem like they never go away

OP, if you have any credit cards that you can pay down, definitely do it! that is the simplest way to give yourself some more points.

Re: Question regarding paying student loans while in school

Tischer712 — Wed, 21 Dec 2011 16:11:36 GMT

I just opened two cards, besides my student loans there isn't anything else positive. Both those cards first statments are due this week, so I am hoping to see them on there, and start building up some good credit.

Re: Question regarding paying student loans while in school

laz98 — Wed, 21 Dec 2011 18:31:52 GMT

are those 2 cards already reporting on each of your reports? i'm wondering if you have already taken the hit for the new accounts, which can either help or hinder your scores temporarily.

Re: Question regarding paying student loans while in school

Tischer712 — Wed, 21 Dec 2011 20:49:14 GMT

My first Wells Fargo one showed up today, huge gain of 27 points, the other Capital one card hasn't shown yet. So still waiting

Re: Question regarding paying student loans while in school

laz98 — Wed, 21 Dec 2011 21:01:07 GMT

are you applying very soon? definitely wait for everything to show up as current, before you buy new scores, so you can see where you really stand

Re: Question regarding paying student loans while in school

Tischer712 — Wed, 21 Dec 2011 21:08:12 GMT

Not apping for the mortgage till April to May. I'm hoping that by then my credit will be in the upper 600's form the 630 I am sitting at now.

Re: Question regarding paying student loans while in school

Tazman81 — Tue, 27 Dec 2011 16:26:55 GMT

Please also consider your debt to income ratio. Most banks require you include the student loans in that ratio if they will be coming due within the next 10monhts or so.

You advised you were graduating, so if you can start paying off any of your loans now to decrease your debt to income ratio, that will help in the approval process as well. Or if you don't think that will be a concern, then that is fine as well.

If you have subsidized and unsubidized loans, pay toward the unsubsidized ones first as those are the ones you are paying the interest on out of pocket.

If debt to income will become a problem when it's time to pay back your student loans, then you may want to try to pay off your loans with the lowest balance and work your way up. Usually federal loan you have requires you pay about $50 a month toward it when it's time for repayment. Sallie Mae has a good loan calculator on their website which will tell you how much per month you will be required to pay as a minimum toward your student loans.

Good luck, and let us know how it goes.

Re: Question regarding paying student loans while in school

Tischer712 — Thu, 29 Dec 2011 16:01:20 GMT

Well unfortunately the program we are going for requires me to not go in repayment for 3 YEARS from the closing date...Looks like I will be taking 1 class a semester for 3 more years just to keep me out of repayment

Re: Question regarding paying student loans while in school

Tazman81 — Thu, 29 Dec 2011 19:07:34 GMT

How much of the student loan monthly payment did the creditor say would be a problem?

Maybe you can pay off some of the lower balanced student loans so that it lowers your debt to income ratio. Or was the lender saying all of the student loans would be an issue?