Frequent Contributor
Posts: 385
Registered: ‎01-20-2012
Consolidating Student Loans

Hi all,


Friend of mine has a horrible credit file filled with a LOT of lates and CO's. I took a look at his EQ report and he's literally got 7 Nelnet loans and about 10 Sallie Mae loans reporting, as well as a Nelnet/Suntrust SL. He went through a really bad patch and is just getting back to good this year, but all of the lates on EVERY one of his student loans has absolutely killed his score. Looking at his report makes me hyperventilate because it just looks like no amount of good he does could make up for so many accounts reflecting 120 days late at various times over the past four years.


If he were to consolidate his loans would that cause them to just be reported as one tradeline for all the loans that were consolidated? I'm thnking that if this is the case that he could consolidate, all of his current student loan tradelines would report a $0 balance and paid in full and he would wind up with just one or two new tradelines for the consolidated loans which would (hopefully?) show a completely positive history, starting from the time the loans were consolidated going forward.


Is this possible? It really just seems that otherwise he's looking at a LOOOONG road to climbing out of the low 500's even though he's now current on all of those tradelines.


Thank you all!

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