Comments on: Do lenders view student loans just as they do other debt such as credit cards?

By: afrlim

afrlim — Mon, 28 Sep 2009 18:17:30 +0000

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By: gogo7

gogo7 — Sun, 27 Sep 2009 22:27:01 +0000

When consolitating bills, I will talk people out of trying to include student loans because the interest rate is so low and the payment is so low. It just does not make sense to do. Other than consolidating, student loans are looked just like any other debt.

By: Esmerelda

Esmerelda — Sat, 26 Sep 2009 20:17:39 +0000

If you are trying to consolidate, a potential lender is going to be more interested in your payment history and in the number of accounts you have rather than whether it is credit card or student loan debt. They also look to see if you are just carrying balances and paying the minimum each month or if you are cutting the actual debt by paying down the principle owed.

Credit card interest is usually a lot higher than student loan interest and therefore, paying cards off first and getting yourself a lower rate on your outstanding debt is a really good idea – it can save you thousands of dollars depending on your balances. Also, credit card companies don’t like to give you deferment, forbearance or alternative payment plans which is another good reason to take care of them first.

Student loan lenders are often easier to deal with as long as you don’t get behind in payments. They will grant forbearance or deferment and can offer graduated payment plans or reduced payments for a time. But be careful if you have to ask for forbearance or deferment on your student loan. They can capitalize the interest accrued during the forbearance (meaning that amount of interest gets added to the principle of your loan and you then pay interest on it).
If you require forbearance, try to make at least a small payment each month. It will cut down on the amount capitalized at the end.

Whatever you decide, good luck. You are going about this in the right way and it will only help your credit later on when applying for a mortgage or car loan.

By: SPIFIMAN1

SPIFIMAN1 — Thu, 24 Sep 2009 11:49:56 +0000

I think it depends on what type of loan you apply for. In my business, auto finance, my lenders do not take student loans near as seriously as credit cards and installment credit lines.

As a matter of fact, they do not even count them as open lines of credit.