Yes they do. Just like any other loan, your student loans also go on your credit report and will be tracked similar to other kinds of debt such as a mortgage loan or credit card debt. Defaulting on your student loans will mean your credit report will take a hit and that will be reflected on your credit score. Any collection action on your student loan will go on your credit report and will affect your chances of getting any other kind of debt greatly. It could even affect your chances or landing a good job since many employers also do a credit check and are loathe to hire someone with a history of poor credit or with loan defaults.
This is why it is imperitive to keep your student loans in good standing. Pay your loans on time and your promptness will be reflected in a good credit score. Think of it as building a good line of credit when you move onto to bigger loans such as a mortgage.
If you are experiencing financial hardships and considering a loan default, you should look into options such as forbereance and deferment to help you lighten your financial burden.
Lastly your student loan though reflected on your credit report should not greatly effect your chances of getting a non educational loan such as a car loan since technically your student loan is in deferment while you are still in college. Your lenders will be primarily be interested in your current monthly debt payments which should be none since you start repaying your student loans only once you get out of school.That said, it is important to keep your debt in check until you land that all important high paying job, after all isn’t that why we all go to school, take on huge amount of debt in the form of student loans?
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