Another Deferement/Forbearance on Student Loans Question

[Anonymous]

Hi all,

I know this topic has been covered many times, but there jsut seems to be way too many different opinions on this topic. I just graduated in May 09 from my undergraduate study. 

Will filing for deferement/forbearance on my student loans totaling of $40k affect my fico/credit score in a negative way that can impair my eligibility for financing mortgages, leasing, etc in the very very near future?

The thing is that I plan on starting my business very soon, and will be applying for several commercial retail property leases in two months. I have been concern with my credit score whether or not if filing for deferement/forbearance will lower my chances of getting my business started. I also planned on looking into business loans, and wanted to take this into account. 

Pretty much, to summarize my situation, instead of me going back to grad school/ med school, I am planning to invest my supposedly time into grad school/ med school into my new business. I hope I hear some good news and bad news from the gurus.

Thanks in advance and hope to hear some replies soon, as I know my deadline will be approaching verrrrry soon.

Cheers

Message Edited by dextercheng on 12-22-2009 09:44 PM

Message Edited by dextercheng on 12-22-2009 09:47 PM

[Anonymous]

Reply

---

Help.

[DI]

No.  The student loans will still report as Paid As Agreed.  Good luck with your new business.

[Jazzzy]

I don't think that having your loans in deferrment will hurt your FICO score any, but the loans may still have an impact on obtaining credit. In reading through posts on the mortgage forum, this topic was recently addressed. The opinion was that even if you don't show a monthly student loan payment currently, your monthly amount may still be included in calculating your debt-to-income ratio, because at some point in the future you will have that monthly payment. That could impact how much money you may be able to borrow.

No med school? Can I ask what kind of business you are opening? Is it medically related?

[Anonymous]

---

@LynetteM wrote:

I don't think that having your loans in deferrment will hurt your FICO score any, but the loans may still have an impact on obtaining credit. In reading through posts on the mortgage forum, this topic was recently addressed. The opinion was that even if you don't show a monthly student loan payment currently, your monthly amount may still be included in calculating your debt-to-income ratio, because at some point in the future you will have that monthly payment. That could impact how much money you may be able to borrow.

No med school? Can I ask what kind of business you are opening? Is it medically related?

---

+1

 Your student loans in deferrment dont hurt you or help you. They are not calculated into your score until they go into repayment. If you look on your credit report provided on this site it shows to the right of the account something to the effect of not being factored or something. But it does show on your credit report the monthly payment that the Dept of Ed has estimated you will pay if you choose the 10 year repayment option. Lenders know that usually once you leave school you have 6 months before your first payment and then this monthly payment will kick in. SO for example if your report shows In Deferrment $500 monthly it isnt being scored yet but potential lenders will see it like an auto loan or mortgage and factor in that monthly amount in your DTI ratio. Alot will vary by lender but that is the information your credit report provides. My student loans will come out of deferrment in April and since I am below full time enrollment now and I am curious to see when they report once they go active and make my first payment what will happen to my score. I figure it will go up since it will show pays as agreed and will start factoring in its age which will make it my oldest open account.