Question : How does a student loan affect your credit?
I have a student loan that is about 50K. I am making payments on it but I am on the income contingent plan and every month I get a statement showing that what Im paying is not enough to pay even the interest, so the balance is higher every month. Does this negatively affect my credit, I pay every month on time but I want to know if this will affect my credit. Does the 50K count towards debt to available credit ratio also. How does the student loan affect credit ratings?
- asked by FuzzyLizard
All Answers:
Answer #1
why don't you get a copy of your credit reportsand make sure all three of them say the samething. If you are paying regularly but your notpaying per agreement. If it actually aGovernmentLoan they can garnish your wages, your bankaccount and your taxes, but only if it actually agovernmentloan and not just a private studentloan.
- answered by Ask M
Answer #2
If you pay them on time, then they will prettymuch be like anything else. If you filebankruptcy, then they will still have to be paid.
- answered by Charlene
Answer #3
Student loans effect your credit score like anyother loans (that means credit cards also). Aslong as you pay on time your credit should befine. But you do want to pay more than yourmonthly accrued interests, otherwise you willnever pay off your student loan, and the balancewill just get higher and higher.
- answered by liwen_bonita
Answer #4
If you set the loan period less than 10 years,your monthly payment may reduce but your loanterms may not be more than 10 years. But youshould ensure that you pay your monthlyinstallments regularly. Failure to do so willraise the interest you have to pay your lender.This is because the charge paid on these loans isan average of all the consolidated loans, roundedoff to the closest 8th of a percent, maximized at8.25%. But consolidating before repayments givesyou lower interestrates.
http://pay-your-debts.com/category/Student-Loan-Consolidation.html
- answered by jemmy t
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