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New Student Loans

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Contributor

New Student Loans

My school is dispersing the loans in a very strange way.

 

Two loans at $250 each Winter and Spring for a total of $500 (Sub)

Two loans at $1500 eah Winter and Spring for a total of $3000 (Sub)

Three loans at $1000 each Winter and Spring for a total of $3000 (Unsub)

 

I asked and they said this is the way they do loans some times more so I will have 7 new loans in just two semesters. I can see two for each semesters one for sub and one for unsub but 7. I think this will be bad for me as it will big dings to my credit. Has this happened to anyone else?

Message 1 of 8
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Valued Contributor

Re: New Student Loans


@Cory88 wrote:

My school is dispersing the loans in a very strange way.

 

Two loans at $250 each Winter and Spring for a total of $500 (Sub)

Two loans at $1500 eah Winter and Spring for a total of $3000 (Sub)

Three loans at $1000 each Winter and Spring for a total of $3000 (Unsub)

 

I asked and they said this is the way they do loans some times more so I will have 7 new loans in just two semesters. I can see two for each semesters one for sub and one for unsub but 7. I think this will be bad for me as it will big dings to my credit. Has this happened to anyone else?


I believe so since they are subsidized and unsubsidized. This is not unusual. It will lower your AAoA for now but down the road they will age.

 

I have had over 20 SLs from several years of school, but they were each broken up by semester and type.




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 11•20 | EQ [F8 615] [F9 653] [EQ5 645] [VS3 657] | TU [F8 600] [F9 552] [TU4 563] [VS3 639] | EX [F8 587] [F9 573] [EX2 614] [VS3 631]
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SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
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Message 2 of 8
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Contributor

Re: New Student Loans


@LaHossBoss wrote:

@Cory88 wrote:

My school is dispersing the loans in a very strange way.

 

Two loans at $250 each Winter and Spring for a total of $500 (Sub)

Two loans at $1500 eah Winter and Spring for a total of $3000 (Sub)

Three loans at $1000 each Winter and Spring for a total of $3000 (Unsub)

 

I asked and they said this is the way they do loans some times more so I will have 7 new loans in just two semesters. I can see two for each semesters one for sub and one for unsub but 7. I think this will be bad for me as it will big dings to my credit. Has this happened to anyone else?


I believe so since they are subsidized and unsubsidized. This is not unusual. It will lower your AAoA for now but down the road they will age.

 

I have had over 20 SLs from several years of school, but they were each broken up by semester and type.


I can see two per semester one for Sub and one for unsub but not four.

Message 3 of 8
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Established Contributor

Re: New Student Loans

That makes sense, it's what you're getting. If you're school does the disbursement by quarters it could get even crazier (my MBA has April, August, December, and May).

It may vary from how it actually reports though. My federal loans are serviced by Great Lakes and they report as a lump sum for my account, even though it's way more than that (14 loans, I only got 3 unsub ones).

If they all report individually for you, that'll be a huge benefit for your AAoA over time. It gives you many more accounts, and slows the diminishing effect of adding others later on.
as of 11/20/20
Current Cards:
Message 4 of 8
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Contributor

Re: New Student Loans


@ccquest wrote:
That makes sense, it's what you're getting. If you're school does the disbursement by quarters it could get even crazier (my MBA has April, August, December, and May).

It may vary from how it actually reports though. My federal loans are serviced by Great Lakes and they report as a lump sum for my account, even though it's way more than that (14 loans, I only got 3 unsub ones).

If they all report individually for you, that'll be a huge benefit for your AAoA over time. It gives you many more accounts, and slows the diminishing effect of adding others later on.

I hope mine will report like that only one as a lot will take a huge ding to my credit and that would not be good. My luck I will get one of the worce servicer out thier.

Message 5 of 8
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Established Contributor

Re: New Student Loans


@Cory88 wrote:

@ccquest wrote:
That makes sense, it's what you're getting. If you're school does the disbursement by quarters it could get even crazier (my MBA has April, August, December, and May).

It may vary from how it actually reports though. My federal loans are serviced by Great Lakes and they report as a lump sum for my account, even though it's way more than that (14 loans, I only got 3 unsub ones).

If they all report individually for you, that'll be a huge benefit for your AAoA over time. It gives you many more accounts, and slows the diminishing effect of adding others later on.

I hope mine will report like that only one as a lot will take a huge ding to my credit and that would not be good. My luck I will get one of the worce servicer out thier.


Hurts at the start probably, but overtime that would be crazy helpful. If you have 14 8 year old accounts, adding a new one has a very minimal effect. If you have 1 8 year old account, adding a new one brings you to AAoA of 4 years instead of 12.5.

 

I've got a spreadsheet in the Understanding FICO scoring forum (I think, or maybe General Credit Topics) that you can use to play around with account age metrics. I've got some updates pending, but haven't really had time recently.

as of 11/20/20
Current Cards:
Message 6 of 8
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Moderator

Re: New Student Loans

Yeah, this is not at all unusual.   After graduation, you can make your life much easier by consolidating all of them into a single loan (provided interest rates have not escalated at that time) when it's time for repayment.   Not only will your repayment be easier to track that way, but you'll have the benefit of those now-aged closed accounts (provided they're not going to be newer than your average age) and since all loans other than federally subsidized will start accruing interest immediately, you should see a nice score boost from getting rid of a bunch of loans that are well over 100% of balance to original loan amount.

Message 7 of 8
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Contributor

Re: New Student Loans


@K-in-Boston wrote:

Yeah, this is not at all unusual.   After graduation, you can make your life much easier by consolidating all of them into a single loan (provided interest rates have not escalated at that time) when it's time for repayment.   Not only will your repayment be easier to track that way, but you'll have the benefit of those now-aged closed accounts (provided they're not going to be newer than your average age) and since all loans other than federally subsidized will start accruing interest immediately, you should see a nice score boost from getting rid of a bunch of loans that are well over 100% of balance to original loan amount.I plan 


 I plan to start paying them as soon as they come out to help pay them down as they will not be that much as my employer is paying for most of cost of my classes.

Message 8 of 8
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