STUDENT LOAN CONSOLIDATION?

Does converging of tyro loans start the credit measure negatively?

{ 2 comments }

Student Loans March 11, 2014 at 1:19 pm

Consolidation of your Federal Student Loans through the FFELP Consolidation Loan Program does not affect your credit score negatively.

Your credit report before you consolidate your Federal Student Loans will show that you have many individual loans. When you consolidate your Federal Student Loans those individual loans will appear that they have been paid off by the new consolidation loan leaving you with only one main FFELP Consolidation appearing on your credit report. As you can see consolidating your Federal Student Loans improves your credit score, and also improves your debt to income ratio.

You must be careful to consolidate your Federal Student Loans through the FFELP Consolidation Loan Program; if you were to combine your Federal Student Loans with your other existing debt you would lose all of your Federal Benefits. Also, your Private Student Loans can not be consolidated with your Federal Student Loans under the FFELP Consolidation Loan Program, if you do consolidate the two together you will lose all of your Federal Benefits on your Federal Student Loans. For more pros and cons to consolidating your Federal Student Loans please visit the link below.

jamesPurple March 11, 2014 at 1:46 pm

Nop.

In fact, your credit score will improve a few months after the consolidation, if you pay every month on time.

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