 TITLE: Does the FAFSA Affect Your Credit Scores? CONTENT: How Can Federal Student Loans Affect Credit?\n--------------------------------------------\nAlthough federal student loans don't require a credit check, they can affect your credit once you've taken them out. As with all credit products, whether they hurt or help your scores will depend on how you manage them.\nOnce you've finished school, you'll begin repaying your federal student loans after a six-month grace period. If you make your loan payments on time and in full every month, federal student loans can build your credit by:\n*   Providing a history of on-time payments\n*   Increasing your average age of accounts\n*   Boosting your \"credit mix\"\nIf you miss a federal student loan payment by 90 days or more, however, your servicer will report it to the credit bureaus. Not only will late payments negatively impact your scores, but they'll stay on your credit reports for up to seven years.\nAnd, if you don't make payments for 270 days, your federal student loans could go into default. At that point, you'll face a cascade of consequences:\n*   Your entire unpaid balance and interest will immediately become due.\n*   You'll lose eligibility for deferment, forbearance and additional student loans.\n*   Your wages or tax refunds could be garnished.\n*   Your servicer could take you to court.\n*   You'll cause long-lasting damage to your credit scores.\nIf you're at risk of falling behind on your student loans, call your loan servicer immediately to see what your options are. Federal loans come with a range of protections, including temporary relief measures and income-based repayment, that can save your credit scores from the detrimental effects of late payments and default. END