Hi guys,
I’m a third-year college student and recently took out $5,000 in Subsidized student loans. I plan to take out more next year. I’m aware that taking on new credit can lower my average credit history, which may decrease my credit score. However, I’m curious; do Subsidized Student Loans affect my credit score while I’m still in school during the Grace Period if I don’t make any monthly payments? The loan terms state that there’s no minimum payment due until 2025. Would making monthly payments now positively impact my credit score?
I’d really appreciate some clarity on this because if my credit score isn’t impacted during the Grace Period without payments, I’d prefer to save that money for other expenses. Plus, I’m considering waiting to see if there’s another round of loan forgiveness from the government.
To sum up, does not making monthly payments on Subsidized Student Loans while still in school affect my credit score?