There are many things that impact your credit score. Your student loans may help you establish good credit and increase your credit score—or they may lower your credit score if they are not kept in good standing. These four tips will go a long way toward helping you keep your student loans current. Show
Credit ReportingAs your student loan servicer, Nelnet reports information about your student loans to the three major credit agencies. Based on the information provided, each individual credit agency uses their own unique scoring model to determine your FICO credit score. The higher your score, the more likely you are to be approved for new credit, or offered a low interest rate. What Student Loan Information is Reported to Credit Agencies?Nelnet provides the below information about your student loans to the credit agencies on a monthly basis. See the Account Information Appendix for more detailed information on each section.
What are Nelnet’s Standard Reporting Practices?These credit reporting practices apply to all of the student loans serviced by Nelnet.
NOTE: With a good will request, a consumer is not disputing an error. A consumer reaches out directly to the original creditor or collection agency asking for forgiveness for a mistake the consumer made and requesting a “goodwill adjustment” to information that was accurately reported to the consumer reporting agencies. How Does Credit Reporting Change During the Life of a Student Loan?Once you take out a student loan, it will flow through different phases until it is ultimately paid in full. In-School and Grace StatusInitially, while you’re in school, a Direct Stafford loan will be in an In-School status. Once you leave school or drop below half-time enrollment status, a Stafford loan will enter a six-month grace period. Loans that are in an In-School or Grace status are reported to credit agencies as follows. In-School and Grace Status Loan Information Reported to Credit Agencies
Keep in mind that Parent Plus loans and certain graduate or consolidation loans are not eligible for an In-School or Grace status. These loan types will begin in the Repayment phase after loan funds are disbursed, or paid out. RepaymentFollowing the grace period, a student loan will move to the repayment phase. In this phase, you will be expected to make payments toward your loan. (If you have trouble making payments, you can log in to your Nelnet account , or call Nelnet at 888.486.4722 to review different deferment, forbearance, and repayment plan options.) Repayment Status Loan Information Reported to Credit Agencies
Closed AccountsThe final phase in the life of a loan is when the loan is ultimately paid in full and closes. Once the loan closes, it is reported one final time, indicating that the loan is closed and noting why the loan closed. The most common reasons a loan can close include: paid in full by borrower; loan transferred; loan consolidated; and loan defaulted. Closed Account Status Loan Information Reported to Credit Agencies
Once the loan has been reported as closed, there will no longer be any monthly updates to the trade line. A loan will typically remain on a credit report for 7 years after the loan has been paid in full. Retention or deletion of items on a credit report are at the discretion of the credit agencies according to their policies. Account Information AppendixECOA Code – Defines the relationship of the primary consumer to the account and designates the account as joint, individual, etc., in compliance with the Equal Credit Opportunity Act. ECOA Codes include
Account Status – Identifies the current condition of the account. Payment Rating – Identifies whether the account was current or past due at the time of closing. Special Comment – Used in conjunction with Account Status and Payment Rating to further define the account. Portfolio Type – Identifies the type of loan and how it will be repaid.
Account Type – Identifies the account classification.
Terms Duration – Identifies the original terms for the life of the laon and is displayed as number of months.
Terms Frequency – Reports the frequency for payments due.
Date Opened – Identifies the date the account was originally opened which will be the 1st disbursement date. Date of Last Payment – Identifies the date of the most recent payment received. Date Closed – Identifies the date the loan was paid in full. Date of First Delinquency – Represents the date a loan went 30 days past due if the loan was reported delinquent in the most recent reporting. This includes a loan that was delinquent at the time it closed. Current Balance – This equals the principal balance plus any accrued interest and fees at the time of reporting. This will be $0 if the trade line is closed. Amount Past Due – This equals the total amount of payments that are 30 days or more past due at the time of reporting. This will be $0 if the trade line is closed or has a current Account Status. Original Amount – Identifies the original amount of the loan, excluding interest payments. Actual Payment Amount – Identifies the amount received on the Date of Last Payment. Scheduled Monthly Payment Amount – Identifies the regular monthly payment amount due.
Payment History – Contains up to 7 years of consecutive payment activity. GlossaryBelow are some definitions of common terms in regards to credit reporting. Accrued Interest – Interest that accumulates on the unpaid principal balance of a loan. Consumer Account Number – The unique number assigned to a trade line by a creditor to identify the account with them. Each individual loan Nelnet services will be given a unique consumer account number and be reported as one trade line. This is not the account number a consumer will see on their statements from Nelnet. Credit Report – A report containing detailed information on a person's credit history, including identifying information, credit accounts and loans, bankruptcies and late payments, and recent inquiries. Credit Reporting Agency – A business that maintains historical credit information on individuals and businesses. They receive reports from lenders and various other sources which are compiled in a credit report that includes a credit score when issued. The four credit agencies are Equifax, Experian, Transunion, and Innovis. Credit Score – A number, generally between 300 and 850, provided in a credit report and used by a lender as a predictive indicator of a consumer’s likelihood to repay a loan. The credit score may be used by the lender to determine eligibility and set the terms of a loan, such as the interest rate and fees. Delinquent – An account that is not being paid on time. Payments become delinquent when they are not received by the due date. Nelnet will begin delinquent reporting when a loan reaches 90 days past due. Default – The failure of a consumer to repay a loan according to the terms of the promissory note. For federal student loans default occurs at 270 days delinquent, and has a negative effect on a credit score. Deferment – A period during which a consumer may postpone loan payments. For certain types of loans, the federal government pays the interest that accrues during a deferment period. For unsubsidized loans, the consumer is responsible for paying the interest that accrues during a deferment period, and any unpaid interest is added to the loan balance when the deferment ends (this is called capitalization). Forbearance – Forbearance allows the consumer to temporarily postpone making payments, or to make lower payments, on a loan for a specific length of time. Rehabilitation – The process of bringing a loan out of default and removing the default notation on a consumer’s credit report. Repayment – The period of time during which a consumer is required to make payments on a loan. The repayment period can be lengthened if the consumer makes lower payments or postpones payments. The repayment period can be shortened if the consumer makes additional payments. Trade line – A trade line is a record of activity for any type of credit extended to a consumer and reported to a credit reporting agency. The trade line records all of the activity associated with an account. Each trade line is assigned a unique Consumer Account Number. https://www.usa.gov/credit-report https://www.experian.com/blogs/ask-experian/student-loans-are-debt-obligations-like-any-other-loan/ https://m2reporterhelp.weebly.com/student-loan-reporting.html https://www.cdiaonline.org/for-consumers/how-credit-reporting-works/ https://www.consumer.gov/articles/1009-your-credit-history#!what-to-do https://www.wellsfargo.com/goals-credit/smarter-credit/credit-101/ https://mygreatlakes.org/educate/knowledge-center/credit.html http://home.nelnet.info/prod/NDS/GTH/Pages/Life-of-a-Loan.aspx https://www.daveramsey.com/blog/how-to-read-your-credit-report https://www.experian.com/blogs/ask-experian/credit-education/faqs/glossary/ https://www.gsmr.org/manage.asp What is a way to identify accounts according to the duration the accounts have been delinquent?Accounts receivable aging is the process of distinguishing open accounts receivables based on the length of time an invoice has been outstanding.
What are aging dates quizlet?Aging dates usually appear at the top or bottom of a patient statement when mailed out to the patient as a bill. What types of debts are covered with FDCPA? The act covers personal, family, and household debts, including money owed on a personal credit card account, an auto loan, a mortgage, and a medical bill.
Which of the following governs the methods that can be used to collect unpaid debts?The Fair Debt Collection Practices Act (FDCPA) (15 USC 1692 et seq.), which became effective in March 1978, was designed to eliminate abusive, deceptive, and unfair debt collection practices.
What does an aging report show quizlet?aging report. Which type of report lists the amount of money owed to the practice organized by the amount of time the money has been owed? insurance aging report.
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