I realize this subject has been discussed many times on this forum. My sister asked me to co-sign on a student loan for my nephew in '05. He has been keeping up on payments albeit sometimes a few days late. AES has never recorded any lates nor charged late fees. He has requested and received a deferment for up to 2 months, (going to a seminary school). My CR shows the deferment on all three CBs although they all show paid as agreed... no lates. AES is sending me paperwork that I can request to be removed as co-signer. Has anyone gone through a co-signer removal process? And does anyone know if the deferment notation on my CR will effect my credit score? Thanks for all answers.
A family member of mine has a number of student loans, several have the deferment notation and considering their score is a very near 700 (what's keeping out of the club is likely a few late pays on student loan accounts that SHOULD have been marked deferred and very high balances on these installment loans), the deferment seems to have no negative effect on their credit. I've never gone through the co-signer removal process while an account was still open. I'm sure you'll continue to have the accounts listed as they were during the time you were on them.
A deferment is just that, a payment status that no payments are currently due. Since no payments are due, there is no effect on your CR as long as the deferment is in place. As mindcrime noted, if there are short gaps while the lender processes the paperwork, those could cause late pays, which although they should go by when the paperwork was RECEIVED, may be reported before they are processed, and could be a pain in the kiester to get rid of after the fact.
Mindcrime and Jam, thanks for the answers.... this puts my mind at ease. MC, the reason I want to be removed as co-signer is the Income to Debt ratio and the fact the loan won't be paid off until 2029. Family comes first for me but if I could do this all over again, I would have said no.
Incomeebt isn't a score factor, but the age is CR's don't have access to your income, so they can't calculate how much of your income is in debts.
Jam, I'm an old man or so my daughter thinks so. (just a joke, I know you're talking age of debt) Maybe I worded this wrong I'm thinking of my total debt and not debt to income. I would like to buy a house (investment) in a couple of years and I know that loan is going to rear it's ugly head. Still if my nephew defaults......... as it is AES calls me at work as a reminder when the payment is 4+ days late.
And mortgages would ask the "income" question, so they could factor that into the scoring model, but it's not a part of the credit reporting agency scoring model. Hey, when I was 20, someone thought I was moving MY SON into the dorms!
