Deferment/ consolidation
Posted by Haitian_King@reddit | studentloandefaulters | View on Reddit | 2 comments
My credit score dropped over 200 points from April until now because of four student loans that have reported as delinquent on my credit report. I am active duty, military and my loans together or less than $10,000. I had no idea that they hit my credit report because I was deployed at the time now going through a divorce and looking to move I got denied for the apartment because my credit score dropped from a 650 to a 440. Does anybody have any advice on what I should do? When I called Ed financial they said I could do a military deferment however I want to improve my credit score. Not necessarily concerned about the payments.
Mental-Chocolate-285@reddit
Sorry you’re dealing with this — you do have options to fix it:
Forbearance/Military Deferment:
If your loans are less than 360 days delinquent, this can bring them current and stop further credit damage.
Loan Consolidation:
If they’re more overdue, you can consolidate to bring them back into good standing within about three months. Just note this restarts your payment history and any progress toward forgiveness.
Loan Rehabilitation:
If already in default, rehab lets you make about nine agreed payments to remove the default from your credit record.
Ask your servicer which status applies. Once your loans are current, your credit can start improving again.
jatin_yadav_241@reddit
First, thank you for your service. Since you’re active duty, you should absolutely request that military deferment ASAP, and also look into Servicemembers Civil Relief Act (SCRA) benefits—they can cap interest rates and provide protections against negative credit actions. After deferment kicks in, dispute the delinquencies with all three credit bureaus and provide deployment documentation. That can often get the late marks removed. This should help your score recover much faster than just waiting it out.