How does a student loan affect your credit?

FuzzyLizard: How does a student loan affect your credit?
I have a student loan that is about 50K. I am making payments on it but I am on the income contingent plan and every month I get a statement showing that what Im paying is not enough to pay even the interest, so the balance is higher every month. Does this negatively affect my credit, I pay every month on time but I want to know if this will affect my credit. Does the 50K count towards debt to available credit ratio also. How does the student loan affect credit ratings?

Answers and Views:

Answer by Ask M
why don’t you get a copy of your credit reports and make sure all three of them say the same thing. If you are paying regularly but your not paying per agreement. If it actually a
Government Loan they can garnish your wages, your bank account and your taxes, but only if it actually a government
loan and not just a private student loan.

Answer by Charlene
If you pay them on time, then they will pretty much be like anything else. If you file bankruptcy, then they will still have to be paid.

Answer by liwen_bonita
Student loans effect your credit score like any other loans (that means credit cards also). As long as you pay on time your credit should be fine. But you do want to pay more than your monthly accrued interests, otherwise you will never pay off your student loan, and the balance will just get higher and higher.

Answer by jemmy t
If you set the loan period less than 10 years, your monthly payment may reduce but your loan terms may not be more than 10 years. But you should ensure that you pay your monthly installments regularly. Failure to do so will raise the interest you have to pay your lender. This is because the charge paid on these loans is an average of all the consolidated loans, rounded off to the closest 8th of a percent, maximized at 8.25%. But consolidating before repayments gives you lower interest rates.