New cra reporting structure

[TherapyPhD]

Last month, my daughter noticed that here student loan by US Bank started reporting differently. She's only been in college for 2 years, but her student loans used to report total dollar amount as one loan. Last month, she said she noticed that it was broken out, basically, by the dollar amount for each semester.

 

When I looked over her cr (she only has the student loan and sprint ) I saw one dollar amount when she originally started and that one loan kept updating each time she renewed her loan per semester.

 

However, now it looks as if she has 13 loans with U.S. Bank (or who ever the guarantee was/is now). The original loan reports as closed and equals the same dollar amount for the individual listings.

 

For those still in college (or still paying on their student loans) did you notice your loans broken out this way?

 

I don't really care for this structure, because though she has not started repayment, where will her payments be applied once she does? When I repayed my student loans (light years ago) it was one payment, to one bank. Each month (well, I didn't monitor my cr everyday/or month like I do now) my payments posted to the one account. This new way (don't know if it's in error or not) opens up reporting problems.

 

Now keep in mind you can't default on uncle sam anyway, but wondered how this could potentially impact her credit report.

 

Thanks

[ziggypop]

Last month, my daughter noticed that here student loan by US Bank started reporting differently. She's only been in college for 2 years, but her student loans used to report total dollar amount as one loan. Last month, she said she noticed that it was broken out, basically, by the dollar amount for each semester.

 

When I looked over her cr (she only has the student loan and sprint ) I saw one dollar amount when she originally started and that one loan kept updating each time she renewed her loan per semester.

 

However, now it looks as if she has 13 loans with U.S. Bank (or who ever the guarantee was/is now). The original loan reports as closed and equals the same dollar amount for the individual listings.

 

For those still in college (or still paying on their student loans) did you notice your loans broken out this way?

 

I don't really care for this structure, because though she has not started repayment, where will her payments be applied once she does? When I repayed my student loans (light years ago) it was one payment, to one bank. Each month (well, I didn't monitor my cr everyday/or month like I do now) my payments posted to the one account. This new way (don't know if it's in error or not) opens up reporting problems.

 

Now keep in mind you can't default on uncle sam anyway, but wondered how this could potentially impact her credit report.

 

Thanks

 

It's correct the way it's reporting now. It's just how SLs report. Assuming she continues to have the same lender (and she doesn't consolidate), she will make a single payment and it will be proportionately applied to all of the loans (I'm pretty sure; it may be applied from oldest semester to newest, but I really don't think so). It's not new. They've been doing it since at least 1995, when I took out my first loans.

 

It shouldn't have any impact on her report, assuming she keeps a good payment record. If she does consolidate, all of those TLs would be marked "closed/paid through refinance" or something to that effect and then there would be 1-2 TLs total for the consolidation loan. Some people only have one for their total consolidation loan amount, but I have two showing up and I know others here do too. Mine is broken down as one for my subsidized SL amount and another for my unsubsidized SL amount. My payments are attributed proportionately to both each month.

 

Hope this helps!! Good luck to your daughter!!

[Cynic]

Well, I work for a lender servicer, and I agree with Ziggy that it's correct and normal.

 

Whether someone has 1 loan with us or 16, we send them 1 statement and they have 1 payment due each month. It's really funny because when people pay off their loans or pull their credit they sometimes find out for the first time that they didn't just have 1 loan with us.

 

As far as payments, we usually apply anything above the minimum amount needed to satisfy all loans to the unsubsidized portion.

Edited June 7, 2007 by Cynic