Student loan: will a deferment or a forbearance affect my credit? I am going to be applying for a mortgage and I want to get a forbearance ( I think) and was wondering if that is a bad idea?

My loan is coming due now.

Veruca S replied: "What makes you eligible for a forbearance? Usually they only grant them in situations such as a job loss. If you are applying for a mortgage, I assume you are working, so you probably aren’t eligible for a forbearance. If you do get one though, it will not affect your credit report."

Victor replied: "You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – buildcredit.ifastnet.com"

Will deferring student loans affect my credit? I am planning to go to law school in the fall and want to stop paying my student loans to save up some money. Would getting a deferment/forbearance affect my credit and/or ability to get future student loans?

girlcat replied: "I don’t see how it could; as long as the deferment has been approved by the lender, and I’m sure it has or you wouldn’t do it.
It will affect your credit in the long run, of course, because they won’t be paid off as soon. I would think your credit record would be better after the loans are paid off.
That might be a good question for a one of the three credit reporting companies."

ohthreekings replied: "Getting your current student loans deferred will not affect your credit score or your ability to get future student loans. As long as you have not been in default on a student loan you should be fine. Your credit score may not be affected, however, your debt to income ratio will be higher and they may affect your ability to get other types of loans. If you were looking at financing a house or a car in the near future, your deferments could come up as an obstacle."

I have a forbearance on my Sallie Mae student loan, but my credit report is still showing late payments. Why? I had trouble making payments on my student loan and have missed a few months payments..so I requested a forbearance. A forbearance allows me more time to pay correct? So, why does my Trans Union credit report still show all of my past delinquent dates? If everything is current and up to date why would it still show this. Has the information just not been updated or do I have to receive documentation from Sallie Mae proving that I am current? I’ve been told that since it’s a federal government loan they have the ability to report a clean record to the credit companies if I make good.

Also, even though I am current on my payments, will these past delinquency dates (if they do stick) affect my chances of getting approved for an apartment? Mind you I have two credit cards and a bank loan which I have never been late so the rest of my report is immaculate aside from this issue with my student loan. 2Fspan>

Jeffrey replied: "This is a common misunderstanding in student loan lending.

A forbearance is prospective, not retrospective. It only postpones payments from the date of the forbearance until the date it ends. It does not go back to your prior missed payments and grant you more time to pay them. That is why TransUnion is still reporting those late payments.

You are not current if you have not paid those lates yet. You need to pay them ASAP.

And whoever told you that a student loan lender will report a clean record once you brought your loan current was completely and utterly wrong. In fact, the student loan lenders are *required* to report delinquencies to at least one credit bureau. If your lates are only reporting to TU, then your lender is being generous and only reporting the lates to them…they could legally report to all three if they wanted to, so consider yourself lucky.

So long as you are not in default on your student loans, you should not have any trouble passing a credit check for an apartment given your statements about the rest of your credit. If you have any trouble you might just keep trying apartment complexes until you find someone who pulls Experian or Equifax only so they don’t see your lates. But even if they pull TU, a few lates here and there on a student loan probably won’t kill your chances at an apartment.

Check my profile for a link to a site I run for more information. I’ve got some information on student loans that might help you out a bit more than this answer.

Good luck!"

I’m trying to clean up my credit and I have a question about a student loan…? I have a student loan that’s 200+ days delinquent, I want to get the loan out of delinquency, but it’s like $590. There is an option that Sally Mae gave me, where if I make a payment they can give me a "forbearance" option, where my loan is extended, and all of the overdue balance is put back into the loan.
This would obviously be better for me, but if "forbearance" looks bad on my credit reports, I’d rather just pay off the 590. I couldn’t get a strait answer from sally mae, so my question is this:

Has anyone ever heard of "forbearance" on a student loan, and does anyone know if it affects your credit reports?

wendy.balsam replied: "i put my loan in forbearance (when i moved across the country and didnt have a job for 3 mo) so you should be fine…it wont hurt your credit…mine is currently at almost 700 and its not due to that. it looks better to put it in that status than not pay it."

Brooke replied: "No a forbearance will not hurt your credit, however 200 days past due will. A forbearance will simply lower your payments for 12 months, and then hopefully you are back on your feet by then. Good Luck"

Handsome Chuck replied: "No, I don’t think it hurts your credit. They know that a lot of people get out of school with large loan debt and take a bit of time trying to get on their feet. Basically, here’s the difference:

Defaulting=I said I was going to pay but I’m not paying=bad credit

Forbearance=I went through the channels and showed you that I’m not in great shape financially at the moment=we’ll work with you"

myangel4everjoe replied: "No it will not hurt your Credit Report. A forberance is like a hold on the loan that keeps it in good standing and you do not have to pay on it. Remember though a forberance is only good for so long."

act_won replied: "forbearance is just a period of time they allow you to repay the debt. not that big of a deal, alot of people have taken advantage of deferrment/forbearance option.

ONE THING!! do NOT let your loan go into fed default… very hard to get out of defaulted status then. i’d definetely try to get a forbearance, if you reach fed default you’re obligated to pay the balance in full unless you can prove hardship.

if you can pay the 500, just pay it off… they may even let you settle it for less."

Mary B replied: "I’ll give you another option….pay the $590, and then ask them for a 12 month deferrment until you can get back on your feet.

You have to be current in order to ask for one, but I think that may be a better option for you."

Luke D replied: "Let me understand this, you’re 200+ days delinquent, but you’re worried about how a forbearance might affect your credit report???? You should have applied for the forbearance before you were 30 days behind.

Forbearance does not affect your credit report in any bad way. As a matter of fact, it will help your big time because it will instantly change the loan from delinquent to current."

kingofkings q replied: "Students who are looking for a bad credit student loan should pick three schools they are most interested in, talk to the admissions office, and ask what is needed to apply in their school.A bad credit<!–student loan is payable only after the student has completed his or her education, and has started earning a certain minimum amount. You can find more information Student Loan here,

Since April 2005, the minimum amount that the candidate of the bad credit student loan is required to earn has also increased. Bad credit student loans are available as both secured and unsecured loans–>depending on whether you are a homeowner or not. The rate of interest to be paid on unsecured bad credit student loans is higher than that on secured bad credit student loans. This is because the secured bad credit student loans are backed by your home as a security."

ed m replied: "no it will not hurt your credit — it just extents your loan."