Also, in what other ways would it affect me?
2006-09-20 02:09:33 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I used to work for a Student Loan Consolidation company. It's your government given right to Defer your loans due to financial hardships. You are allowed to defer them 36 months total. It will not affect your credit score in any way. You will continue to be charged interest on your loans, which you will have to pay off in the end but nothing is worse than defaulting on your loans. Once you default, they are allowed to send your loans to a collection agent and that is when they will show on your credit report. The only thing that will change is that you will not be making payments. You will still, depending on which company you have, receive bills urging you to pay what you can to keep your interest for going sky high,but you do not have to pay and will not be dinged for not paying that. It shouldn't be a problem, if it is, you may want to consider consolodating with another company. Due to new guidelines,it's really easy now.
2006-09-20 03:12:26 · answer #1 · answered by ~mj~ 3 · 0⤊ 0⤋
Basically what it does, it takes the term and extends it. Say you have a 30 month term for payback on your loan and you defer 2 months, it will change from a 30 month term to a 32 to month term. As long as the place you are financing your loan through is aware and agrees to this deferment, then you won't have any problems with your credit.
2006-09-20 02:18:59 · answer #2 · answered by Sandi A 4 · 0⤊ 0⤋
It will not negatively impact your credit score because when you defer the loan, the lending institution is giving you permission to put off paying back the loan. They allow people to defer because in the long run, they make more money from you in accumulated interest.
2006-09-20 02:17:52 · answer #3 · answered by nido_tr3s 5 · 0⤊ 0⤋
If you work-out a longer-term payment plan with the originator of the student loan, and do all this in writing, then it shouldn't affect your credit score at all........
However, if you simply skip payments or let the payments get 90 days old, etc...yes, it will impact your credit score.
But, once you are "gainfully employed", your credit score will again rise up.
2006-09-20 02:17:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If I am not mistaken, student loan does not affect credit score even if you defer its payments
2006-09-20 02:17:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋
it did nothing to affect mine in the past, my score is good now.
The loan is only repayable when you are in full time employment and earning in excess of 15k (May have changed)
If the loan is government funded then repayments are taken at source so there is no way to avoid them (without legitimate deferal)
I am seven months from paying mine off, total time of seven years.
2006-09-20 02:18:49 · answer #6 · answered by Bladerunner (Dave) 5 · 0⤊ 0⤋