Receiving Aid in '08-'09
Good Credit Records
For most students, a student loan is their first experience with a credit program. Student loans can be an excellent way to finance an education and establish a good credit rating at the same time. Pay your student loan promptly each month. Frequent late payments constitute delinquency and may harm your credit history. Here are some tips on establishing good credit:
- Stay in contact with your lender/the federal loan servicer at all times. Notify them before you fall behind on payments.
- Notify your lender of any address or name change.
- Send your payment each month, even if not billed.
- Never ignore correspondence or a payment request.
Protect Your Information at Credit Bureaus!
Federal law requires the federal government to report student loan information and subsequent monthly payment information to credit bureaus (currently all three major credit bureaus). As a student borrower, it is in your interest to understand what credit bureaus legally can do with information in your credit record. You have the right to prohibit a credit bureau from using information in your credit record in connection with any credit or insurance transaction not initiated by you. As a borrower, you may exercise this right by calling 888/567-8688 and selecting Option 2. In the future, the Direct Loan Servicing Center will include information to this effect in their welcome letter to new borrowers. If you have additional questions, please contact Direct Loan Borrower Services at 1-800/848-0979.