Student Loan Rehab Complete..Question on Balance Reported and High Ba

[Anonymous]

I completed my student loan rehab in December.  TU and EX have updated their reporting.  Still waiting on EQ.

The original loans were with Nelnet and they picked them back up again.  They are reporting the new loan with a balance of $58,107 and a high balance of $39,164 on TU and EX.  Is this reported correctly on the new loan?  Or can I ask them to report the new loan as $58,107 only to help my "utilization"?

[llecs]

I can't comment as to how a SL reports, but installment utilization is a very, very tiny part of FICO scoring. In other words, if you paid off all but $1 on your loans tomorrow, and they updated, I wouldn't bet on any score increase. Now revolving utilization, on the otherhand, can dramatically impact your FICO score and certainly not applicable here.

Per score change, you may see a slight FICO dip if or when the new TLs report as part of the rehab. Any damage is temporary though.

[Tazman81]

I agree with llecs, I would not worry about utilization with respect to SL installments.  Most student loans do report like this.  From my understanding, the amount in the "high balance" was usually the original amount of the loan, and then the balance is what it is today.  They do this so that creditors can see if you have been making payments on the loan while in deferment, or if you are just allowing the interest to accrue.  It gives creditors a better idea of your "future" financial responsibilities.