Why does my credit report list so many loans? I only went to one school!

People will often times call and say they checked their credit report and they had 10 loans listed on there.  They then proceed to say they don’t understand because they only went to one school and only make one payment.

Every year that you apply for a loan, you receive a separate loan from the Department of Education (or a bank if you had older loans).  Sometimes because you qualified for both subsidized and unsubsidized loans you will have received two loans.  If your school gave you a Perkins loan, this would also be a separate loans.  In addition if all this doesn’t cover the cost of attendance, then you may have to obtain another private loan.  You can quickly see where this would add up in terms of loans that appear.

If you only received Stafford Subsidized and Unsubsidized loans, it is very possible you will only have one bill as servicers will take your four smaller installments of $25.00 and send you a bill for $100.00.  This is done for convenience, so you aren’t writing out four separate checks but does not change how your loans are reported to the credit reporting agency.  In fact if you were to specify for all your payment amount to go to just one loan you would be reported as current for that one but as delinquent for all the other loans because they are all individual.

For how this does affect your credit contact someone (perhaps a financial advisor) for further guidance in this area.

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