Forbearance

[wvjules]

Just noticed on my most recent SL payment/statement that my account is in Forbearance. Apparently when I filed BK it automatically went that way for 4 months. (I"ve been paying it monthly anyway.) Anyway, its due to change back to regular/paying as agreed or whatever the correct loan status is on November 21. What affect, if any, will this have on my credit reports? Will it atleast increase my scores a little?

[Cynic]

Forb is paying as agreed to the best of my knowledge.

[Cynic]

Forb is paying as agreed to the best of my knowledge.

[wvjules]

Does it? The comments say the loan in in deferrment. When I called USDept of ED, they said that status automatically changed to that when I filed BK. It will change back when the automatic forbearance expires on 11/21/06.

[Cynic]

The company that I work for (1 of the largest SL servicers in the country) reports accounts as either current or delinquent. When in deferment or forbearence they report as "current".

 

If your lendor is reporting your loan as "in deferment" while it's in a mandatory bankruptcy forbearence, that should be interpreted as current/paying as agreed, and may positively effect your debt-to-income ratio until it's again in repayment. Are they reporting last payment recieved date and next payment due date?