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How do direct sub loans report while in school?

Remi1
Valued Member

How do direct sub loans report while in school?

Hello,

Can ya'll please provide some insight on how the federal direct subsidized loans appear on your reports while you're still in school, or for the 6 month grace period following graduation? I may need to take out a small ($2750) one this fall. Just the one, and my only student loan ever. So no experience with them. Not sure if it'd show deferred, current, $0 payment due, or what. Someone please educate me! Also, does it start reporting or show that it was "opened" as of the disbursement date? Or another date?

Thank you all!

4 REPLIES 4
rostrow416
Frequent Contributor

Re: How do direct sub loans report while in school?

Everything should report as normal except the status would say "closed"

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Message 2 of 5
Remi1
Valued Member

Re: How do direct sub loans report while in school?


@rostrow416 wrote:

Everything should report as normal except the status would say "closed"


Could you please elaborate on what "as normal" means? Like I said I have no experience with student loans. Would "normal" mean it would be listed as current/on time, deferred, something else? 

Message 3 of 5
calyx
Super Contributor

Re: How do direct sub loans report while in school?


@Remi1 wrote:

@rostrow416 wrote:

Everything should report as normal except the status would say "closed"


Could you please elaborate on what "as normal" means? Like I said I have no experience with student loans. Would "normal" mean it would be listed as current/on time, deferred, something else? 


Yes, it should post with no negatives, just the amount, opening date (likely when it was disbursed) and that it's closed.
There will be no current/on time since it's not open.    There may or may not be notations (like "deferred" or "in school" or "fixed rate" etc., but those have no bearing on how algorithms read your file).

Sometimes, the loans can post as "open" and "in deferrment" which is when you'd usually see the "current/on time" status reflected.

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Message 4 of 5
Remi1
Valued Member

Re: How do direct sub loans report while in school?


@calyx wrote:

@Remi1 wrote:

@rostrow416 wrote:

Everything should report as normal except the status would say "closed"


Could you please elaborate on what "as normal" means? Like I said I have no experience with student loans. Would "normal" mean it would be listed as current/on time, deferred, something else? 


Yes, it should post with no negatives, just the amount, opening date (likely when it was disbursed) and that it's closed.
There will be no current/on time since it's not open.    There may or may not be notations (like "deferred" or "in school" or "fixed rate" etc., but those have no bearing on how algorithms read your file).

Sometimes, the loans can post as "open" and "in deferrment" which is when you'd usually see the "current/on time" status reflected.


Thank you, I appreciate the info!

Message 5 of 5
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