How does $8,000 in neglected student loans effect long term credit?
Student Loan
How does $8,000 in neglected student loans effect long term credit?
It has been about 4 years that I have neglected it, I am planning on paying it off in full by the end of the year.How will this effect long term credit after it is paid off?
would it be futile to try and rebuild my credit after it is paid?
once you repay it it’ll stay on your report for 7 yrs
It’s only been the last few years that student loans have negatively affected credit ratings and been shown on credit bureaus.
Instead of waiting and paying it off in full you should call them now and pay what you can…if you set up a repayment plan it will look much better on your credit reports almost right away…and that will go towards rebuilding your credit. Also there are interest relief programs etc that could help you. Call them and find out…
It is never to early to rebuild your credit. There may already be lots of good credit history on your reports if you have a credit card etc.
The sooner you pay it off the sooner you can start repairing your credit. Once you are debt free you should consult a credit counseling/re-building non-profit and get yourself a low limit credit card. Your interest rate on the card will be high, but if you use it and pay it off right away every time it can help you rebuild also. Don’t default on your utilities either!!
No prblem.Tell them your identity was stole
You really need to contact the agency holding your student loans and set up a payment plan. These are in default. The loans will show up on your credit report and stay there for seven years. Check out these sites and look up rehabilitating a defaulted loan. It’s good that you’re going to pay these off. But they’ve been neglected for four years. Also, something else to consider: The federal government and department of education CAN AND WILL GARNISH YOUR WAGES.
“Under the Higher Education Act, the Department and guaranty agencies may require employers who employ individuals who have defaulted on the repayment of a student loan to deduct 15% of the borrower’s disposable pay per pay period toward repayment of the debt. Also, the Debt Collection Improvement Act of 1996 permits the Department to garnish up to 15% of disposable pay. Garnishment may continue until the entire balance of the outstanding loan is paid. You should note that wage garnishment is used only for borrowers who refuse to voluntarily repay their defaulted loan and is not used with those borrowers who continue to make regular and timely monthly payments.”