5 Facts About Student Loans and Credit

1. Putting loans in deferment or forbearance doesn’t hurt a borrower’s credit. Your borrowers’ servicers can assist them with deferment and forbearance options.
2. Student loans are a great way to establish credit history. Many student borrowers have not established any type of credit history, and student loans can be a positive way to do so.
3. As student loans are categorized as installment loans, the addition of such can boost your credit score. A variety of credit categories can have a positive impact on borrowers’ scores.
4. Federal student loans can help you establish a good credit record.
5. All borrower’s should check their credit report annually at www.annualcreditreport.com, and submit a credit dispute for any discrepancies identified on their credit report.

For more information on student loans and the impact to credit, please visit any of the three credit reporting agencies: Experian, TransUnion, and Equifax.

Dana Kelly, Trainer and Southern Regional Director, Nelnet Partner Solutions