Reply
Established Member
Posts: 16
Registered: ‎07-06-2007
0

Consolidating Student Loans

I have a question about consolidating student loans through the Federal Direct Education program. Will this help my credit scores? Right now I have five individual loans all in deferment and in good standing totalling about 48K. The analyses of my cr on the various monitoring/reporting services say that the # of loans is hurting my credit score. I'd like to consolidate 4 of the 5 loans (one I'll lose benefits for if I consolidate) into a single loan of about 38K. I'll get lower interest rates, and reduce the number of loans reported from 5 to 2. I checked with gov agency, and the consolidated loan would be reported to all 3 CAs. I am working hard to rebuild/re-establish my credit and want to make sure I maximize any benefit to my CR that I can. Thanks in advance!
Highlighted
Regular Contributor
Posts: 171
Registered: ‎05-18-2007
0

Re: Consolidating Student Loans

I'd be more worried about saving hundreds (probably thousands if you have $38k loan) of dollars in interest rates than bumping my FICO score. From what I can tell in your message, you'll be saving money in the long run, money that you can use to pay other debts if you have any and with time, your scores will go up.
For age and want, save while you may; no morning sun lasts a whole day.
--Benjamin Franklin
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.