December 16, 2021

How Often Does FedLoan Report to Credit Bureaus?

Chipper Help

FedLoan Servicing reports the status of your student loans every month. This agency reports your accounts to designated credit bureaus. You can get a free credit report from Annual Credit Report to see the status of your FedLoan student loans.

Any monthly payments you miss can lead to delinquency or default. These statuses can affect your credit standing in the long run, which may cause negative effects in the future. Avoid getting these statuses on your loans before FedLoan Servicing reports your standing to the credit bureaus. Here is a short guide to keeping you from getting delinquent or defaulted student loans.

Change Your Due Date

You might miss paying your student loans because you don’t have the money by the time your account charges your fees. Consider setting up your due date to a different day. Be sure to set it on a day when you know you’ll have enough money in your bank account to pay off your monthly dues.

Get started with this strategy by signing into your FedLoan Servicing account. You can schedule a maximum of eight payments up to two months in the future. This payment option gives you the flexibility to adjust according to your income. In addition, you can check your account less frequently while ensuring that you remain current in your payments.

Get a Repayment Strategy

You can create a repayment plan to work in your favor. This strategy helps you establish your repayment goals to avoid any late payments on your student loans.

Sign in to your FedLoan Servicing account to begin. You will need your loan details, including your balances, program, interest rates, and how long you have been repaying them. This information can help identify the best options suited to your situation.

Delinquent vs. Default

Delinquent loans are those that you failed to pay on time. These loans go into default if a loan remains delinquent over 270 days. Student loans that go into default carry negative consequences, including:

  • Bad Credit: Delinquent loans damage your credit rating. As such, you may lose eligibility to the best interest rates in the future.
  • Wage Garnishment: Once you get employed, your student loan servicer may take what you owe directly from your paycheck. This automatic payment scheme would limit your income.
  • Tax Refund Withholding: You may not get your tax refund because of your delinquent status. FedLoan Servicing being connected to the government may withhold your tax return to cover the student loans payments you owe.

Conclusion: How Often Does FedLoan Report to Credit Bureaus?

FedLoan Servicing submits monthly reports about your student loan accounts to credit bureaus. These reports will determine your credit standing. You will have good credit standing if you repay your loans on time. Your loans may become delinquent if you fail to make on-time payments. Eventually, delinquency leads to default, which would damage your credit standing.

Consider getting a repayment plan or changing your due date to help you manage your expenses. Your goal with these options would be to avoid making late monthly payments to prevent FedLoan Servicing from giving you a bad report to the credit bureaus. Log into your account to begin setting up these strategies.

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