The overwhelming amount of student debt our country is facing is all over the news. Estimated to be in excess of $1 trillion, that leaves college graduates with an average debt of $33,000 each. While this can be viewed as a noose around your neck, it doesn’t have to be. When student loans are handled responsibly, they can actually be an excellent tool for establishing a student’s credit history and credit score.
If your student limits the amount of money borrowed to only the amounts that are needed to cover tuition, books and other education-related expenses, it help keeps the total loan amount to a more manageable sum. Paying even small amounts toward your student loans while you are in school and continuing to make timely payments after you graduate is an effective means for boosting your credit score. In fact, in this scenario, a young graduate could be eligible for a mortgage loan, vehicle loan and unsecured credit cards despite having student loan debt.
It is important to understand how your student loans impact your credit score. Similar to other loans, your credit score will see the most dramatic increase by you paying your student loan payments when due. If you make each monthly payment on time, the credit reporting agencies typically make a notation of that on a continuing, 30-day basis, which boosts your credit score.
Your student loan can also negatively impact your credit score, especially if your loan goes into default. A defaulted loan is not only detrimental to your credit score, but it can also impede your ability to get started in your adult life. In fact, it is possible a potential employer will check your credit report before offering you a job. Thus, if you are struggling to make your monthly student loan payments, let us help you obtain a deferment, negotiate are more manageable repayment plan, or even loan forgiveness.
For your student loan, bankruptcy, foreclosure, and debtor’s rights matters, contact DeLadurantey Law Office, LLC at (414) 377-0518. We serve the counties of Milwaukee, Waukesha, Kenosha, and Racine, including such areas as Milwaukee, Merton, Delafield City, Waukesha City, and Kenosha. Visit our web site and like us on Facebook.