4 things you may not know about Credit Reporting

1. Your servicer credit reports monthly (both good and bad)

Every month your servicer will report your loans to a credit agency.  They will be reported as either current or the number of days delinquent.

2. You are eligible for negative credit reporting from day one but usually not until 30-60 days late

As a result if you are a day or two delinquent you typically have nothing to worry about but you should definitely stay on top of the loans to avoid negative reporting.  The best way to do this is to discuss with your servicer about forbearance, deferment, and lower payment options.

3. All your individuals loans are reported, just not per servicer

Each time you take out a loan (usually two per year, a subsidized and unsubsidized) it is listed individually on your credit report.  If you have 5 loans with one servicer and 7 from the other servicer, you will have 12 loans listed on your credit report not two because you have two servicers.

4. If your loans are owned by the DOE and they are transferred, you will not be reported for the first 60 days

When a loans are owned by the Department of Education and transferred from one DOE servicer to another, your loans will be not credit reported good or bad for the first 60 days.  This is done because during a transfer sometimes things happen such as payments being transferred from previous servicers (which can take up to 60 days) that may in the short term make a loan delinquent when it is not the borrower’s fault.  To keep any negative consequences as a result,there is no reporting happens for at least the first 60 days.  After 60 days, reporting rules are the same as for any other loans.