New User Sign Up  |  Sign In  |  Help
ask
answer
discover
     
Search for questions :
My Profile

alina

Open Question Bookmark and Share

What effect does student loan deferment has on ones credit score?

I wanted to know that whether student loan deferment would lower my credit score, for my school I had to borrow no cosigner loan because my parents were not able to help me with this & I simply did not want to drop the idea due to high fees. Due to such prevalent situation I had to continue with the studies by availing loan every year. Repaying all this was not easy for me & so I asked for grace period which is to end soon. I was thinking whether to begin its repayment or defer it further and how my credit score would be affected by this. Any one with any ideas?

225 day ago

    Comment(s) (0)
    Report Abuse
   Find Intereseting  
   E-Mail to Friends  
   Bookmark  
   Subscribe to Answer Alert  
No comments yet !!!     Be the first to comment
Answers (1)

Problems with loan repayment that starts after course enrolled in is completed & you get into job is quite prevalent & commonly found. The situation is more or less same with each borrower of student loans without cosigner as the interest rate you are asked to pay is slightly high in comparison to others.

To provide relief to students from financial hardships, government has included the deferment option and it is no way will have influence on your credit score or lower it any way. Yet should start paying the same when time comes as deferment for a period of more than 36 months is not allowed & in between all this time the interest keeps on adding to the amount & ultimately it repayment has to be done by you only.

So, you need to set things in your mind & plan a repayment schedule & accordingly begin with it & always keep off from defaulting on it because it will have numerous adverse effects including that of decrease in credit score.



Posted 225 days ago

( 0 )
( 0 )
    Comment(s) (0)
   Report Abuse
No comments yet !!! Be the first to comment on this answer !!!


Email this question link to friends
You must enter email-address, if name is entered and vice-versa for each friend.
Friend #1 -
Friend #2 -
Friend #3 -
Friend #4 -
Friend #5 -
  Your comment on this question
Max Allowed : 5000 Characters Current Count : 0
  Your comment on this answer
Max Allowed : 5000 Characters Current Count : 0

home | about us | disclaimer | privacy policy | contact