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Make sure all current student loans show as OPEN!

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Contributor

Make sure all current student loans show as OPEN!

I've had a student loan account that has been open since 2004.  I could not, for the life of me, figure out why Experian has been lower than the others for over a year.  Figured it out:  This loan that I have almost FIFTEEN YEARS worth of on-time payments on?   Yeah, Experian showed it as closed, with a small balance, and "Paid" as the status.  Good grief.  After doing a bit more research and comparing some old reports, I found out they had done that with several student loan accounts.  Score increase:  12 points.  :-D

 

Apparently, this is a common situation with student loan accounts with funky terms (Perkins!) for people who qualify for annual amortization and $0 repayment.






AMEX 12000 / PenFed 7500 / NFCU 3000 / CO 1500 / Disco 1300 / CareCredit 6000

EX8 683 / TU8 725 / EQ8 728
Message 1 of 8
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Senior Contributor

Re: Make sure all current student loans show as OPEN!


@Kreditwuerdig wrote:

I've had a student loan account that has been open since 2004.  I could not, for the life of me, figure out why Experian has been lower than the others for over a year.  Figured it out:  This loan that I have almost FIFTEEN YEARS worth of on-time payments on?   Yeah, Experian showed it as closed, with a small balance, and "Paid" as the status.  Good grief.  After doing a bit more research and comparing some old reports, I found out they had done that with several student loan accounts.  Score increase:  12 points.  :-D

 

Apparently, this is a common situation with student loan accounts with funky terms (Perkins!) for people who qualify for annual amortization and $0 repayment.


Nice catch!

In my case, mine is (single consolidated) open, but noted as "deferred"
It's not deferred.   It's just paid way ahead (next payment due: July 2021).
Servicers are weird.




F8 EQ: 804 | EX: 794 | TU: 801 | Accounts: 2/6 4/12 8/24
Happy practitioner of AZE9or10or11 | Team Finances > FICO
Message 2 of 8
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New Member

Re: Make sure all current student loans show as OPEN!

EX had my 11 FSL accounts statuses as “closed” as well. My mind was blown. It was a 45 point jump when corrected.
Message 3 of 8
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Established Member

Re: Make sure all current student loans show as OPEN!

Curious how this is supposed to be handled with Covid suspended payments? My Fedloan Direct Consolidation loans are reporting as open but my FFELP Nelnet account from 2004 is showing Closed  - but it's in forbearance mimicking the Fed Loan deferment.  Does it being in closed vs open status really impact anything? My positive payment history appears to still be counted as well as the age as it's my oldest l of an of any kind. But, I don't know how to tell if I'm missing out on points somewhere?

 

Thanks!

Message 4 of 8
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Established Contributor

Re: Make sure all current student loans show as OPEN!

Closed installment accounts don't seem to impact anything other than maybe average age of accounts, seems like they aren't like credit cards where they keep having a positive affect.
as of 11/20/20
Current Cards:
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Senior Contributor

Re: Make sure all current student loans show as OPEN!


@ccquest wrote:
Closed installment accounts don't seem to impact anything other than maybe average age of accounts, seems like they aren't like credit cards where they keep having a positive affect.

Closed installment account are still counted for AAoA in FICO scoring, Vantage doesn't count it, but not a lot of lenders use Vantage as a primary determinant in lending.

The biggest impact closed installment loans will have is on 1) DTI  and 2) determining your installment utilization

Since the CARES act (I note that the thread is old), my loans are now listed as "Forbearance - Affected by natural disaster" but still open.




F8 EQ: 804 | EX: 794 | TU: 801 | Accounts: 2/6 4/12 8/24
Happy practitioner of AZE9or10or11 | Team Finances > FICO
Message 6 of 8
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New Contributor

Re: Make sure all current student loans show as OPEN!


@calyx wrote:

@ccquest wrote:
Closed installment accounts don't seem to impact anything other than maybe average age of accounts, seems like they aren't like credit cards where they keep having a positive affect.

Closed installment account are still counted for AAoA in FICO scoring, Vantage doesn't count it, but not a lot of lenders use Vantage as a primary determinant in lending.

The biggest impact closed installment loans will have is on 1) DTI  and 2) determining your installment utilization


Thanks. I guess I have to look for Vantage lenders. So limiting Smiley Sad

Message 7 of 8
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Member

Re: Make sure all current student loans show as OPEN!

Good job finding that out!!! More people need to see this.  I had a similar situation when I applied for a mortgage.  My student loan was reported in "default" and I had no clue.  Bottom line, be vigilant!! Keep it up!

A Bank is a place that will lend you money as long as you can prove you don't need it -Bob Hope
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