student loan question...
prtexas
Member Posts: 6 ■□□□□□□□□□
I'm finishing up application process for WGU. (Will hopefully start 08-01-15) I will be doing student loan. I work fulltime and have a house. I do not currently have any student loan debt, so was curious if your current student loan shows up on your credit report while you are going to school?
I am going to look into refinancing mortgage to lower rate, but was not sure if you just "started" a student loan balance...ie going to school and taking student loans...if that shows up on credit report, or only once you are done going to school.
I have looked all over but can't seem to find the answer. Curious if anyone here knows.
thanks,
JP
I am going to look into refinancing mortgage to lower rate, but was not sure if you just "started" a student loan balance...ie going to school and taking student loans...if that shows up on credit report, or only once you are done going to school.
I have looked all over but can't seem to find the answer. Curious if anyone here knows.
thanks,
JP
Comments
-
RHEL
Member Posts: 195 ■■■□□□□□□□
Typically, yes. Any loan you take out will show up on your credit report after some time. Student loans tend to be semester-based, so you'll likely see it pop up on a credit report at some point during that semester.
Here's the thing though -- your ability to refinance is more about your monthly payment obligations and less about the sum of dollars you owe. As you will be a fulltime student, your loans will be deferred with a $0 minimum payment. This will not negatively impact you much, if at all, in the decision process. -
Mitechniq
Member Posts: 286 ■■■■□□□□□□
Some banks will consider your graduation date.If you are 6 months from completing your degree they could possibly include that in your DTI. -
BlackBeret
Member Posts: 683 ■■■■■□□□□□
Yes they will show up immediately. As others mentioned the mortgage companies look at your monthly payments. The mortgage company I'm buying through right now requires a deferment of 1 yr from closing in order for them not to count it. Since the loan has to be processed 1 month prior to closing that means a deferment of at least 13 months, and the loan company currently holding my wife's student loans only defers them 6 months at a time, pending her full-time student status.
Basically they will be counted against you. The good news is that loans are usually issued out on a semester basis. If you're refinancing soon, you'll have the repayment of the first semesters loan count against you.