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Valued Member
bettercredit
Posts: 43
Registered: ‎06-06-2007

Consolidating Student Loans

Does it help or hurt?
 
As much as Sallie Mae has srewed me over I am considering consolodating with them as they seem to have th best program. Do you all know of any other student loans consolodating programs? The rates go up July 1st so I'm trying to lock in.
 
Thanks.
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: Consolidating Student Loans

Nope. Has very little (if any) impact on your scores.
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007

Re: Consolidating Student Loans

Are your student loans in default?    If so I would check with Sallie Mae and see if you consolidate them if they would be elegible for their Rehab program.
 
If they aren't defaulted than I would say yes, consolidate them it will make life alot easier to help mangage them.    Also look at the Direct Loan from  http://www.ed.gov/offices/OSFAP/DirectLoan/index.html  that is a very good one as well.
Established Contributor
Irvin
Posts: 510
Registered: ‎04-17-2007

Re: Consolidating Student Loans

I submitted my consolidation request to Direct Loan. I got two loans totaling roughly around $17K.
 
My monthly payment with Salli Mae would have been 156 per month, but it would take 180 months to pay off the entire amount.
 
Direct Loans, my payment would be 204 a month but i will finish paying it off in 120 months.
 
So, i did the calculations and i save over $6K in interest if i consolidate with Direct Loan.
 
 
Regular Contributor
Neblett
Posts: 217
Registered: ‎04-17-2007

Re: Consolidating Student Loans

[ Edited ]
I am in the process of consolidating my student loans as well.
 
However, I have a question.  As of now I technically have 45 loan accounts (the large number is due to having both subsidized and unsubsidized federal loans, over the course of 10 years - I'm finishing my PhD right now). 
 
I recently received an email from a rep at CSC, and she said when the loans consolidate, all of the Closed (Paid) accounts will be deleted from my report, so that the only loan account that will appear is the final consolidated loan.  Will this hurt me by eliminating what have been a large number of positive tradelines with a long history - some stretching back to 1994?
 
If so, can I request that they keep the accounts on file?
 
Is this large number of accounts hurting me in general, even though they are reporting Paid as Agreed?


Message Edited by Neblett on 06-19-2007 12:39 PM
Valued Member
bettercredit
Posts: 43
Registered: ‎06-06-2007

Re: Consolidating Student Loans

Neblett that's a good question. I'm waiting for an answer to your question as I too would like to know if consolidating would delete my accounts with Sallie Mae & Direct Loans from my credit report. I was reported 150 days late by Sallie Mae due to them not sending my information to the correct mailing address (as I requested) and due to my loan being in forebearance and coming out before the scheduled time.
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007

Re: Consolidating Student Loans

From how I take it is this,  if you rehab with the lender you defaulted on your credit report will be wiped clean after you completed your rehab program.  I not sure if you can both rehab and consolidate at the same time,  I would call Sally Mae and ask them this for a definte answer.   
 
If you consoldiate you defautled loan with another institution other than they one you defaulted on the black marks stay on.   This is what happened to me.   I took my from  Sallie Mae and ECMC and brought them over to Direct Loans.   I inquired about my credit report but they are there too stay.  I didn't have a choice,   ECMC who was collection for Sallie Mae  wanted way too much for a down payment and a very high montly payment plan.   I had to bite the bullet and go with Direct Loan.
Valued Member
bettercredit
Posts: 43
Registered: ‎06-06-2007

Re: Consolidating Student Loans

So if I qualify for the rehab program the late payment information will come off my report once I complete the program/pay off my loan?
 
How much does student loan defaults being added to your credit drop your score? Does anyone know the exact or guesstimated number?
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007

Re: Consolidating Student Loans



bettercredit wrote:
So if I qualify for the rehab program the late payment information will come off my report once I complete the program/pay off my loan?
 
How much does student loan defaults being added to your credit drop your score? Does anyone know the exact or guesstimated number?



I do believe so , but I'm not sure.   But your loan has to be in default to qualify for the rehab proram though.  
 
Defaulted Student Loans is the next worst thing to Bankruptcy in terms of your credit score IMHO.  It literally destroys it.  If it's not, then don't    How it work for me at least, because it depends on the terms of distribution and mine were by the semester.   So ever semester where they cut you a check was treated like a separte loan, even though I was paying one,  so it is showing up on my credit report 6 times for Sallie Mae and 6 times for ECMC.  I was a nuclear bomb hiting my report.
Valued Member
motoracer
Posts: 158
Registered: ‎06-15-2007

Re: Consolidating Student Loans

did i understand that right??? I have 2 student loans the remainder balance for both is only about $2000. which never has defaulted, but has late pays because of a wrong address and a forbearnace thing. so If I consolidate them they will wipe my CR clean?? If that is the case im doing that tonight lol

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