Should I consolidate my Sallie Mae loans?

[deg757]

I have 8 different loans with Sallie Mae. 5 unsubsidized and 3 subsidized. I got the first one in 2000 and the last one in 2007. Interest rates range from 2.8% to 6.8%. These loans have been in and out of forbearance for various reasons and are currently in forbearance now. In 2009 I had some 120 day lates on them. My fault. No explanation other than that. I did an extended repayment plan with them last year to where I could afford the payments.

Would consolidating these loans be beneficial to me? Would it help my credit at all or hurt? I really don't want to change my total payment unles it goes down. I honestly didn't even realize the loans reported separately on my credit report until we bought our house last year.

[SCF]

Consolidating won't make the old tradelines or lates disappear.  Since you have two types of loans, it would open two new tradelines on your report, which would bring your AAoA down in the short-term.  If all your loans are under one servicer, and you are currently making only one payment, then there really isn't much added convenience in consolidating, although it might make applying for forbearance/deferrment easier since it would be harder to "miss" a loan on the paperwork.

When you consolidate, you might be able to choose an extended payment plan to lower your payment, you could call the servicer and ask about it.  But for lowering your payment, it would increase your total interest paid.  IBR and PAYE I believe take into account your total loan burden, so your payment on those plans with or without consolidating should be the same.

Personally, I wouldn't bother unless you really need the extended repayment plan.