topic Re: Consolidating FED Student Loans - FICO score changes in Student Loans

Consolidating FED Student Loans - FICO score changes

jsweeti1 — Sun, 05 Mar 2023 17:21:41 GMT

Hello all!

How might consolidating all my 21 fed student direct loans into one loan affect my credit?

Welcome any advice! Thanks!

Re: Consolidating FED Student Loans - FICO score changes

donkort — Sun, 05 Mar 2023 17:57:26 GMT

From my experience, it raises your credit score slightly.

Are you consolidating from one servicer to another (e.g. MOHELA). If so, your score would rise moderately for a couple of weeks because it would be marked as "paid" to the old servicer, then lower back to what it was before when the new servicer reports to the credit bureaus.

Going for PSLF? If so, excellent luck!

Re: Consolidating FED Student Loans - FICO score changes

jsweeti1 — Sun, 05 Mar 2023 18:05:24 GMT

@donkort wrote:
From my experience, it raises your credit score slightly.

Are you consolidating from one servicer to another (e.g. MOHELA). If so, your score would rise moderately for a couple of weeks because it would be marked as "paid" to the old servicer, then lower back to what it was before when the new servicer reports to the credit bureaus.

Going for PSLF? If so, excellent luck!

No, I believe I am staying with my current servicer aidvantage. And yes, going for PSLF. I know the odds aren't in my favor, but I will try.

Re: Consolidating FED Student Loans - FICO score changes

donkort — Tue, 07 Mar 2023 17:48:58 GMT

I would ask around:

I am under the impression that consolidating the loans under MOHELA smooths out the path towards PSLF. It did exactly that for me.

Re: Consolidating FED Student Loans - FICO score changes

Itgem679 — Thu, 09 Mar 2023 20:09:12 GMT

Aidvantage has it on the website when you log into your account. I had 19 loans with them that I consolidated into 2 - unsubsidized and subsidized. You may want to look for the steps in Help Center if you don't see it under Tools in the left hand pane. Hope this helps