A credit score is a number that summarizes your credit history. Before you borrow, credit scores are used to determine eligibility for PLUS loans, and interest rates for private loans.

It is hard to know for sure how credit scores are calculated, but the creator of these scores, Fair Isaac has said that a large student loan balance may hurt you - but not as much as maxing out your credit cards. Making on time payments can help your score.

Late payments or loan defaults will hurt your score. If you discharge your loan in bankruptcy, it will no longer be listed as currently in default on your credit report. However, the fact that you filed bankruptcy will be on your credit report for ten years.

The Department of Education, guaranty agencies, and lenders are required to send information about you to credit bureau organizations. They must supply information about the total amount of loans extended, the remaining balance, and the date of default if you are in default. They supply information concerning collection of the loan, repayment status and the date the loan is fully repaid or discharged by reason of death, bankruptcy, or disability. Most private lenders will also report to credit bureaus.

If you default, your loan will be listed as a current debt that is in default. The default will also be listed in the historical section of your credit report, specifying the length of the default. If you repay the debt in full, the debt will no longer be listed as a current debt in default, but it will still be listed on your report for up to seven years. Perkins Loan defaults can be reported indefinitely.

To see sample credit reports, read How to Read Your Credit Report on TrueCredit.com and samples on ConsumerInfo.com.