Established Member
Posts: 16
Registered: ‎07-06-2007
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!