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Off setting Student Loans "closing" Impacting Scores

KristinaQ86
Member

Off setting Student Loans "closing" Impacting Scores

My student loans just reported as closed... Because fed loans is no longer servicing them... And it dropped my credit 87 points.. or at least that's literally the only change I see... Now when the new serviced finally reports them it will probably plummet it again right, because it will pick up $25k in "new debt" and way drop my average age of accounts right? Is there any way to offset this drop?? We were planning to be mortgage ready in the next few months... I dont really have any other debt to pay down to get any "quick wins" with utilization.. Im feeling incredibly defeated right now.

Message 1 of 5
4 REPLIES 4
Adkins
Legendary Contributor

Re: Off setting Student Loans "closing" Impacting Scores


@KristinaQ86 wrote:

My student loans just reported as closed... Because fed loans is no longer servicing them... And it dropped my credit 87 points.. or at least that's literally the only change I see... Now when the new serviced finally reports them it will probably plummet it again right, because it will pick up $25k in "new debt" and way drop my average age of accounts right? Is there any way to offset this drop?? We were planning to be mortgage ready in the next few months... I dont really have any other debt to pay down to get any "quick wins" with utilization.. Im feeling incredibly defeated right now.


When the new servicer picks up your student loans, they should back date from the original loan date. We've talked about this over in the student loan forum, and I used an example of my loans being closed and then reopened with a new servicer (this will be my second one). See here: https://ficoforums.myfico.com/t5/Student-Loans/Granite-State-Management-and-Resources-is-not-renewin...

 

TLDR: You should regain some points!

Last HP 05-15-2022



Message 2 of 5
Adkins
Legendary Contributor

Re: Off setting Student Loans "closing" Impacting Scores

Message 3 of 5
aWakening69
Established Member

Re: Off setting Student Loans "closing" Impacting Scores

Looking to buy a house (FHA) perhaps as early as a couple weeks from now, and I'm also concerned about this. Mine currently are listed as "US Dept of Ed/Navient," but has changed over to Aidvantage. But everything is exactly the same - the payment amount, due dates and even account number.

It is possible on this one that there isn't a closing of an account and an opening of a new one, but instead the name on the credit report line just changes to "US Dept of Ed/Aidvantage?"

And I guess what you're saying is even if it DOES have a closed account and a new account opened, it'll balance out? 

Message 4 of 5
SouthJamaica
Mega Contributor

Re: Off setting Student Loans "closing" Impacting Scores


@KristinaQ86 wrote:

My student loans just reported as closed... Because fed loans is no longer servicing them... And it dropped my credit 87 points.. or at least that's literally the only change I see... Now when the new serviced finally reports them it will probably plummet it again right, because it will pick up $25k in "new debt" and way drop my average age of accounts right? Is there any way to offset this drop?? We were planning to be mortgage ready in the next few months... I dont really have any other debt to pay down to get any "quick wins" with utilization.. Im feeling incredibly defeated right now.


What score dropped 87 points?


Total revolving limits 684000 (587000 reporting) FICO 8: EQ 715 TU 712 EX 695

Message 5 of 5
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