College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider




Your Credit Report, Part 1
 
Banks and other lenders reviewing your credit report won't hold it against you that you've gone to school, earned a degree, and accumulated $10,000, $50,000, or even $100,000 worth of student loan debt in the process—as long as you are paying it on time.

Student loans are not something negative that hurts your FICO score or diminishes your potential to obtain bank loans, credit cards, mortgages, or other financing. The problem comes in, however, if you default on one of those student loans. That does negatively affect your credit standing, and it does so in a number of ways.

You may already know that any negative information about your bill payment history (such as a late payment) can be kept on your credit report for seven years at a minimum; ten years for a bankruptcy. But there is another provision in the law though under the Higher Education Act that toughens the severity of any negative information contained in your credit report. In essence, there are statues of limitation when it came to you being legally obligated to repay a debt and that creditor being able to sue you. In most states, for example, the statute of limitations on credit card debts range from three to ten years.

With a student loan, however, there is no statute of limitations of any kind. This means that if your student loan has defaulted and been turned over to a guarantee agency or the Department of Education, they can report your default forever on your credit report. Moreover, they have the right to file a lawsuit against you, get a judgment against you, garnish your wages, or take other legal actions against you—regardless of how long ago that debt was incurred. It could have been 5 years, 10 years, or even 25 years ago when you got those student loans.

The fact that creditors can "pursue you to the grave" over your old student loans, says Deanne Loonin, staff attorney at the Washington, D.C.-based National Consumer Law Center, gives the Department of Education tremendous power and puts you at an enormous disadvantage. The lack of a statute of limitations for student loans puts borrowers "in unenviable, rarified company with murderers, traitors, and only a few violators of civil laws. Even rapists are not in this category since there is a statute of limitations for rape prosecutions, at least in federal law," said Loonin in a 2006 report called No Way Out: Student Loans, Financial Distress, and the Need for Policy Reform.




 


Article Title : Your Credit Report, Part 1
Comment not found for this article.
 
Comment

Related articles
• Your Credit Report, Part 2
• How to Build a Credit Rating, Part 1
• Credit Card Tricks, Part 1
• How to Build a Credit Rating, Part 2
• How to Build a Credit Rating, Part 3

Share this story:
  • BlinkList
  • blogmarks
  • del.icio.us
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz
 



EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
Thank you so much for your quick action EdFed! I was worried about consolidating my loans in a timely manner and you guys handled things very efficiently. I will recommend you to all of my friends.
- Sheryl C.  Grand Rapids, MI
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
CONSOLIDATION NEWS
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
CALCULATORS
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Articles
Calculators
FAQs
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Use our handy payment calculator to estimate how much you can save by consolidating your federal student loans today.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2016 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
EDFED NEWSLETTERS
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives