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Why is Stafford loan showing up as 6 accounts on credit report? Will it affect his credit for a mortgage loan?

Senatorkatie asked:


I just ran my husband’s credit report and noticed that six different accounts appear for his Stafford Loan for graduate school. The loans are all through the same bank - Wachovia. Each semester they take out these loans so therefore it looks like he gets a new student loan every 6/7 months. First, can we correct this? Second, why are there six different accounts? Third, will this affect his credit score and therefore our chances of a lower interest rate on a home mortgage? Any information would be very helpful - I don’t even know where to begin.

Cory

Tags: Credit Score, Loans, Stafford Loan

This entry was posted on Friday, August 15th, 2008 at 1:33 am and is filed under Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Why is Stafford loan showing up as 6 accounts on credit report? Will it affect his credit for a mortgage loan?”

1. Ambivalence says:

   August 17, 2008 at 2:58 pm

   no prob , but hey I can I borrow a couple of hundred gran - my credit is alittle minced, is that cool…
2. andy says:

   August 20, 2008 at 9:09 am

   This is perfectly normal each semester is treated as its own loan, because… each semester is its own loan. The only way I could think of this going away would be loan consolidation(only do this if you can consolidate to a lower interest rate). 3.) The fact that it is appearing as 6 loans doesnt matter for his score, debt is debt whether it is 1 loan or 6 (for the most part). If he is above 680 I wouldnt be to worried as you will still get a good rate. Student loans should be the least of your concerns for a variety of reasons, focus on paying off credit card debt, car loans, store cards etc… Student loans are often very low interest, very low payments, and tax deductible if he makes less than 50K. The only way this really affects a mortgage is your debt to income ration. If he has alot of student loans and then that will affect the amount you can be approved for.