Negative Student Loans/How much to they hurt your score?

[celticslegends]

Over the last year or so I have been fixing my credit and have dug myself out of a hole.  The only thing negative on my reports now are my student loans.  I plan on taking care of them, but have other things on my plate in the interim.  

How much of a negative role do they have on your credit report score wise?  Will credit card companies deny you because of the negative student loan TL's, or is it mainly focused on your revolving credit line?

Any info on this would be appreciated.  Thanks!

[kjel]

Depends on how negative the payment history is, how many days delinquent you are, and if they are defaulted. They burn your score a lot. If you have federal loans and are in default, get into the rehab program which is a 9 month low payment trial to get your loans back in good graces. There is a very helpful Student Loan forum here, do visit it.

[celticslegends]

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@kjel wrote:

Depends on how negative the payment history is, how many days delinquent you are, and if they are defaulted. They burn your score a lot. If you have federal loans and are in default, get into the rehab program which is a 9 month low payment trial to get your loans back in good graces. There is a very helpful Student Loan forum here, do visit it.

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Yes, they are all far gone and defaulted.  I've managed to get my scores into the 600's and make other progress, but I suspect getting into the 700's may be tough doing.  They are all federal loans and school loans.  Should I call them, or write letters?

[pizzadude]

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@celticslegends wrote:

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@kjel wrote:

Depends on how negative the payment history is, how many days delinquent you are, and if they are defaulted. They burn your score a lot. If you have federal loans and are in default, get into the rehab program which is a 9 month low payment trial to get your loans back in good graces. There is a very helpful Student Loan forum here, do visit it.

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Yes, they are all far gone and defaulted.  I've managed to get my scores into the 600's and make other progress, but I suspect getting into the 700's may be tough doing.  They are all federal loans and school loans.  Should I call them, or write letters?

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I'm going to move this to the Student Loans forum, for better visibility

[kjel]

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@celticslegends wrote:

Yes, they are all far gone and defaulted.  I've managed to get my scores into the 600's and make other progress, but I suspect getting into the 700's may be tough doing.  They are all federal loans and school loans.  Should I call them, or write letters?

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Figure out where your student loans are first. Visit https://www.nslds.ed.gov/nslds_SA/ and click the "Financial Aid Review" button to get to the login screen. Once you log in you will see a list of all of your student loans. Click on the little square with the number for each loan and it will give you the current status of the loan, amount owed, and the servicer information with a contact. Make sure you check all the loans because they may be with different servicers. You need to contact the servicer(s) to get enrolled into the loan rehab program. Definitely call them as they can set it up the same day and send you out the paperwork. Having a default status can lead to being placed on the Treasury Offset list which will garnish your tax refund if you get one. Also it makes you vulnerable to garnishment. If neither one of these has happened to you, count yourself lucky and make the call so you don't end up in that boat.

Official details about student loan rehab: http://www.studentloanborrowerassistance.org/collections/federal-loans/getting-out-of-default-federa...
Additional helpful info: http://www.studentloanborrowerassistance.org/collections/federal-loans/getting-out-of-default-federa...

[celticslegends]

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@kjel wrote:

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@celticslegends wrote:

Yes, they are all far gone and defaulted.  I've managed to get my scores into the 600's and make other progress, but I suspect getting into the 700's may be tough doing.  They are all federal loans and school loans.  Should I call them, or write letters?

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Figure out where your student loans are first. Visit https://www.nslds.ed.gov/nslds_SA/ and click the "Financial Aid Review" button to get to the login screen. Once you log in you will see a list of all of your student loans. Click on the little square with the number for each loan and it will give you the current status of the loan, amount owed, and the servicer information with a contact. Make sure you check all the loans because they may be with different servicers. You need to contact the servicer(s) to get enrolled into the loan rehab program. Definitely call them as they can set it up the same day and send you out the paperwork. Having a default status can lead to being placed on the Treasury Offset list which will garnish your tax refund if you get one. Also it makes you vulnerable to garnishment. If neither one of these has happened to you, count yourself lucky and make the call so you don't end up in that boat.

Official details about student loan rehab: http://www.studentloanborrowerassistance.org/collections/federal-loans/getting-out-of-default-federa...
Additional helpful info: http://www.studentloanborrowerassistance.org/collections/federal-loans/getting-out-of-default-federa...

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Thank you for that info above.  You helped me greatly.  I have plenty of ammo to take to the collector that has the loans.  Thanks again!

[Anonymous]

I don't know exactly how much weight they hold in regards to scoring, but I do know that the only negatives I have on my cr are 2 student loans which are in rehabilitation. In the last 2 months I have been denied by Chase and Discover solely for the 2 deragatory loans on my report. My loans do not show up on my TU I was actually able to get them removed from there. So any bureau that pulls TU I have no problem getting approved. But the other 2 result in denials. 

Are you going to rehab the loans?

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@celticslegends wrote:

Over the last year or so I have been fixing my credit and have dug myself out of a hole.  The only thing negative on my reports now are my student loans.  I plan on taking care of them, but have other things on my plate in the interim.  

How much of a negative role do they have on your credit report score wise?  Will credit card companies deny you because of the negative student loan TL's, or is it mainly focused on your revolving credit line?

Any info on this would be appreciated.  Thanks!

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[celticslegends]

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@Anonymous wrote:

I don't know exactly how much weight they hold in regards to scoring, but I do know that the only negatives I have on my cr are 2 student loans which are in rehabilitation. In the last 2 months I have been denied by Chase and Discover solely for the 2 deragatory loans on my report. My loans do not show up on my TU I was actually able to get them removed from there. So any bureau that pulls TU I have no problem getting approved. But the other 2 result in denials. 

Are you going to rehab the loans?

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@celticslegends wrote:

Over the last year or so I have been fixing my credit and have dug myself out of a hole.  The only thing negative on my reports now are my student loans.  I plan on taking care of them, but have other things on my plate in the interim.  

How much of a negative role do they have on your credit report score wise?  Will credit card companies deny you because of the negative student loan TL's, or is it mainly focused on your revolving credit line?

Any info on this would be appreciated.  Thanks!

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Thanks for your response.  Yes, I am going to rehab them.  I really don't have a choice.  I plan on calling them tomorrow to get the ball rolling. I bet if I applied for the prime cards like you I would be denied as well because of my student loans.  I figured that was the case.  I've had recent success with my CU recently and Cap 1, but have not applied for anything else.  I would like another CC though.  I'll see how the rest of this month goes.

[celticslegends]

I was able to successfully come to an agreement with the collector of my loans and get them rehabed today.  It will take 9 months, but I am relieved this is done.  Once the 9 months are up, all of the negative info will be erased and show payments on time since inception.  I'm lucky they didn't garnish my wages.  Thanks to everyone for all of your advice.

[Anonymous]

That's great to hear. That is a big step and you can have this cleared up by next summer. Good luck on your credit repair journey. 

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@celticslegends wrote:

I was able to successfully come to an agreement with the collector of my loans and get them rehabed today.  It will take 9 months, but I am relieved this is done.  Once the 9 months are up, all of the negative info will be erased and show payments on time since inception.  I'm lucky they didn't garnish my wages.  Thanks to everyone for all of your advice.

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