I have just called called Equifax, Experian and Factual Data(a 3 in 1 type) and no one can answer this: I have a small (4,000) parent/student loan taken out for my son. It is still in deferral and will be for at least another 3 years. How is this tabulated on my credit report? Debt /income ratio? Thank you in advance for any information.
Yes I'd like to know as well, seeing as how I have student loans in deferment until February 2005 bump...
I don't know about the CRAs...but, I am in the process of buying a home. My mortgage people said they only factor student loans into the D/I ratio if it is in repayment or will be in repayment in the next 6 months. So, things that are currently and will be in deferrment for at least 6 more months are not counted. I do not know if htat is standard practice or not, however.
It's factored only into D/I ratio or money owed when it is in repayment. I believe this is standard practice.
Just checked my credit score and it looks it like it could be good for the score- it counts as a "pays as agreed" even though it's still in deferral. It helped me out by a few points. Thanks for the replies.
Each lender can be different... One lender said they had to count deferred/forebearanced student loans into the D/I ratio, even though they were not in re-payment, because they can't be certain whether or not they would remain in deferrment/forebearancent; and they needed to ensure that if they weren't the D/I ratio would support the new account. But it is a positive thing scorewise. Think of it as a long-term "pays as agreed", its a notation that until the end of the deferment/forbearance period, the account is going to be current.
