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Federal SL consolidation

Established Member

Federal SL consolidation

Lot of student loans, 450k, all in forebearance. Consolidated to one payment which will go into active repayment this month, but low ibr payment of only about $200. 


Drop scores? Raise scores? No affect?


my understanding is consolidating federal debt does not generate a hard pull.

my understanding is my 21 SLs making up the 450k will now show as paid and this will help my score.

my understanding is the new consolidated loan will lower aaoa and add a new installment loan, which will hurt score.


net affect?

Message 1 of 7
Established Member

Re: Federal SL consolidation

Bump.  Also im reading the more open installment loans you have the more it negatively impacts scores.  My student loans are over 20 in number undergrad + med school, so 20 down to 1 with consolidation should help score aye?

Message 2 of 7
New Member

Re: Federal SL consolidation

Same boat here. Consolidation is about to hit next month. 25 loans into 1, roughly 500k. Anxious to see what happens to score. Gotta love the health professions.
Message 3 of 7
Established Contributor

Re: Federal SL consolidation

You are correct in that there is no hard pull. I consolidated 12 separate loans worth $100K myself, not much change in my score but that was likely due to other negative factors. I will tell you that I took a bit of a ding on the AAOA but it's totally worth it since I pay overall less interest and have one single payment to deal with. I have an IBR and working towards the 10 year public service debt forgiveness program. 

Current Score: TU: 674 | EQ: 722 | EX: 717 | Last Inq. 2/16/15...Locked Up in The Garden
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Message 4 of 7
Frequent Contributor

Re: Federal SL consolidation

I am in the middle of the consolidation process right now for 150k. Glad to see I am not alone!  I was wondering how it woudl effect my score to, I guess only time will tell....

Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 5 of 7
Regular Contributor

Re: Federal SL consolidation

I consolidated 11 SM loans into one back in 2007, so I can give a little insight.


I'm not sure whether there was a HP, as I didn't pay that close attention back then.


I know I had MULTIPLE 90-120 day lates on each of the eleven individual loans and they did NOT go away until they aged off late last year (about 2-3 months earlier than they should have).


You will take a small hit for AAOA as it starts a new tradeline for consolidated loan.   Tthe old individual tradelines will stay on the report for I believe 10 years from the time you closed them.


IBR has been a GODSEND for me as well, although I will say that once you get into the program be VERY aware of when your renewal date is every year.  This year was my first renewal and the only notification they sent me was two months before the cutoff date via their website correspondence.


Luckily I checked it FOUR days before the cutoff, and they actually hit me with a statement for a $3K payment, before renewing the IBR just three days before it was due.......  Smiley Surprised

Starting Score: EQ 641, TU ???, EX ??? (myfico 6/7/13)
Current Score: EQ 760, TU 740, EX 750 (myfico July 2015)
Goal Score: 800 across the board

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Message 6 of 7
New Member

Re: Federal SL consolidation

Sorry to thread jack. I was hoping the reduced number of accounts would offset the small change in AAoA. I have a pretty thick credit file, so I was thinking my AAOA wouldn't change much (but I'm a newbie so I might not fully understand the concept). CR #1 thing that's hurting my score is "You have too many credit accounts with balances". Guess I could play what if all day, I'll update in a month when it actually happens.
Message 7 of 7