deferred student loans

[tosha29]

Hi everyone! My student loans ($21,000) are deferred and is showing on my report as paying as agreed and in good standing. How is the affecting my score if the balances are always the same every month? I really can't afford to start paying them back right now but I do want to raise my credit scores which are: eq 584 ex 610 and tu 603.

[Meya]

Good question! They are not impacting your scores at all. What we have is an installment account, and every creditor knows that it is a student loan which is not in any kind of default status. Don't let that part worry you, whatever you do, keep the status in deferment until you are comfortable with repayment.

[charonh]

Ditto! I answered your question in a different thread. I wouldn't worry about it if I were you. The only thing I try to do is pay the accumulated interest each time me lenders send me a statement to prevent it from added onto my balance/principal.

[Jay1]

Same here I am in deferment again now until Jan 2010. I was told by the rep at Direct Loan Servicing Center that this would have no negative affect on my credit.

[Wanderer]

The question was asked... what happens if the balance on my student loan remains the same each month. Probably nothing. Your total credit report is the key and if the balance remains the same the computer looks at totals and doesn't know the terms and condition of the specific credit entry. Credit reports and FICO scores work more on categories and totals. The terms and conditions of each credit entry is unknown to the bureaus. As long as the student loans report ok you are likely good to go!

[Meya]

They are not impacting the scores at all, but what it is doing, is raising your overall debt, which includes all debt on your credit report.