Do NJCLASS loans have a positive or negative impact on your credit score? While a good, on-time payment history of student loans can positively impact your credit score, students with NJCLASS loans are finding that there is a long-lasting negative impact on their credit when they default. If you make your NJCLASS student loan payments in full and on time each month, you are building up a positive credit history that may prove useful to you in the future, particularly if you need to get a car loan or a mortgage. But what happens to your credit if you can’t afford your NJCLASS payments? Especially, what happens if you default on your NJCLASS student loan payments? As it stands now, if NJHESAA considers you to be in default on your NJCLASS payments, it will place a negative notation on your credit report indicating that you defaulted on the loan. The problem with a negative notation on your credit report about your NJCLASS loan is that there is no way to remove it. In this way, Federal student loans are different from NJCLASS loans. If you default on a Federal student loan, there is often a way to remove the default notation from your credit report, at least in many circumstances, if not all. But not so with NJCLASS loans. Even if you make a new repayment deal on your NJCLASS loan after you default, the negative notation will remain on your credit report. This is because there is currently no rehabilitation program in existence for NJCLASS loans – in other words, there is no way to get out of default on an NJCLASS loan short of paying off the entire loan. If you or someone you know is having trouble with an NJCLASS student loan, call Jennifer N. Weil, Esq., a student loan lawyer in New Jersey, at (201) 676-0722.