topic Re: Consolidating Student Loans in General Credit Topics

Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 16:03:34 GMT

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.

Re: Consolidating Student Loans

Tuscani — Tue, 19 Jun 2007 16:54:31 GMT

Nope. Has very little (if any) impact on your scores.

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 17:20:08 GMT

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.

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 17:37:11 GMT

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.

Re: Consolidating Student Loans

Neblett — Tue, 19 Jun 2007 17:39:13 GMT

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

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 19:45:39 GMT

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.

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 19:52:33 GMT

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.

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 19:56:39 GMT

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?

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 20:05:40 GMT

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.

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 22:18:34 GMT

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

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 23:07:38 GMT

My direct loan got a 60 and 90 day late marks from last year (feb and mar06). Loan was in forbearance and payment wasn't due until Jun06. If i consolidate with Direct Loans, would that entry with 60 and 90 day lates would be removed???

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 23:22:03 GMT

As far as my opinion about Sallie Mae, their customer service is terrible. They are foreign speaking so they are difficult to talk to and they don't ever seem to be able to answer a straight question. I called and asked that my extra payments be applied to my principle balance and just kept getting a letter about how payments are allocated. Not exactly what I was needing and after 2 calls and 4 emails, I'm still not sure they are allocating my additional payments to principle.

But your question about the number of loans that will show on your CRA....I had several Sallie Mae loans (both subsidized and unsubsidized) and consolidated them with Sallie Mae in July 2003. I also had a 12 month forebearance at one point, but no delinquencies.

My old loans still show on my CRAs as well as the loans I had from USA Group that was bought by Sallie Mae. None of them dropped off and in fact my credit report now says I have too many accounts (30 total with 15 being student loans!).

I posted before about the number of accounts and the flag on my CRAs, but no one was able to tell me if I should pursue having those taken off. The USA Group date back to 2001. If anyone finds an answer to this question, I'd sure love to hear the answer!!!

Re: Consolidating Student Loans

Anonymous — Tue, 19 Jun 2007 23:53:44 GMT

I have 2 loans if I consilidate will this hurt my credit score?

Re: Consolidating Student Loans

Anonymous — Wed, 20 Jun 2007 02:47:11 GMT

After SL rehab the LATES STAY - it is the account status that will be updated to "pays as agreed"

On another note is you consolidate SL while in default they will STAY THAT WAY FOR 7 YEARS.

Federal Law requires they (the loan servicer) report correctly while the government is Guarantying to loan.
You can try GW or disputing accurate lates after the loan is paid or consolidated.

I was told by my servicer they "might fail to respond to the verification within 30 days"

edited - Hi Timothy,

Our Credit Repair Discussion Guidelines frown on posting links to sites that promote and\or offer credit repair services.

Thanks for your participation!

- Tusc

http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html

Message Edited by Tuscani on 06-19-2007 09:47 PM

Re: Consolidating Student Loans

Neblett — Thu, 05 Jul 2007 01:02:40 GMT

Okay - my student loan consolidation reporting is almost complete.

All but 3 of my consolidated loans are showing as "Closed (Paid)."

When the consolidation loan - the one that has absorbed all the others - posts to my credit report, will that lower my score? Raise it? Do nothing? The loan is in deferral and the first payment isn't due until 2009.

I know I've asked this before, but I still haven't gotten a clear idea of what will happen, and I just want to be prepared.

Re: Consolidating Student Loans

Tuscani — Thu, 05 Jul 2007 13:40:01 GMT

Neblett wrote:
Okay - my student loan consolidation reporting is almost complete.

All but 3 of my consolidated loans are showing as "Closed (Paid)."

When the consolidation loan - the one that has absorbed all the others - posts to my credit report, will that lower my score? Raise it? Do nothing? The loan is in deferral and the first payment isn't due until 2009.

I know I've asked this before, but I still haven't gotten a clear idea of what will happen, and I just want to be prepared.

My guess is your score won't change much, if any.

Re: Consolidating Student Loans

Neblett — Thu, 05 Jul 2007 14:00:38 GMT

The only reason I'm asking is that I'm afraid that when a new loan that size (over $150,000) posts to my credit, will it do me in, as far as length of credit history and new balance are concerned?

I'd love it if it does nothing to my score.

Re: Consolidating Student Loans

Tuscani — Thu, 05 Jul 2007 14:02:47 GMT

Neblett wrote:

The only reason I'm asking is that I'm afraid that when a new loan that size (over $150,000) posts to my credit, will it do me in, as far as length of credit history and new balance are concerned?

I'd love it if it does nothing to my score.

It should balance out since your old SL TLs will show as closed.

Re: Consolidating Student Loans

Anonymous — Thu, 05 Jul 2007 15:36:49 GMT

I recently consolidate my SL from my undergrad & grad school. I can tell you they will stay on. At least all of mine did.

Re: Consolidating Student Loans

Neblett — Thu, 05 Jul 2007 15:47:26 GMT

Okay. Maybe I'm not making myself clear.

I know the closed loans will stay on. I have no problem with that.

All I'm wondering is, will the new addition of a $150,000 student loan affect my score adversely, when it posts? Mainly concerned about total balance of debt owed in scoring model.