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Student Loans on Credit Report

By Faye Mergel
Published: Monday, July 19th, 2010

98844078Many college students ask whether their student loans will appear in their credit report or not. The answer is: yes, they do. They remain on the credit report for, to college students’ dismay, about seven years.

Credit reports contain information that is useful when applying for loan, setting up for new accounts, applying for insurance and such. With the problems in creditworthiness and default risks, it is obviously proper for lenders to have a background check on their potential customers to assure that they don’t get left behind or robbed off their money. The reports are also one of the things that employers look into. The information in the report will provide the employers the general image of their applicants. It tells if the applicant is responsible, reliable and doesn’t just go for the money but for both the money and the company’s sake. A bad credit report can also delay finding an apartment or buying for a new car especially when landlords rely on rental payments solely and the car sellers has other customers lined up.

Now, the good news. Credit reports of students are fortunately still in the lane of hope. Help is all around these young people who are considered to be the future’s citizens. Future leaders and professionals will come from them that is why it is safe to say that the government and the public has to be relied on for help regarding bad credit reports. But most of the credit relief must come from the students themselves. Preventive measures are always advised, so students must know what those are even though they’re on the brink of financial depression. That’s always a plus, being an educated cardholder.

Students must take the preventive steps ALWAYS. Like their school grades, students must take notice of all transactions involved in their credit history. They should learn more about financial management and should learn how to budget their money and manage their credits. For students already having credit problems and bad credit reports, they don’t have to be super worried. As stated before, the government and the public have developed measures to help students repair their credit reports.

The U.S. Department of Education can help ease out the monthly payments. Students must call the department and negotiate paying terms for the student loan. The Education people surely understand students being troubled with loans. Students may as well contact their lender about Loan Rehabilitation Program. To qualify for the program, students must agree to make at least nine monthly payments within twenty days of their due dates over ten months. The financial counselors of universities can also be approached and sought for advice. They can provide lots of strategies how the student can pay off the loans and how the students can prevent more damage to their reports. The repair of reports can be quickly done if the student has the attitude of patience and willingness.

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