Can and should I consolidate?

[Bmom]

I currently have several loans with Nelnet. Currently,  they're under pandemic pause, and I'm already approved for them to be forgiven if the Biden-Harris thing makes it through the SCOTUS.

My issue is it's currently affecting my credit negatively due to owing

16,339 of 13,327 borrowed. 

If I consolidate:

Will my payments still be paused?

Will I still be eligible for the relief if it somehow makes it out of the Supreme Court?

Will owing 100% of the consolidated loan help more than owing roughly 120% of the total loans? It has to, right?? 😵‍💫🫣

Nelnets faq didn't really make that clear, neither did the department of Ed. Could be that I'm tired and over thinking it.

[donkort]

I've consolidated a few times...and got lower interest as a result.

You can try various scenarios on the Studentaid website.  You don't have to make a commitment.

The pause will continue until at least August.

I don't see why you wouldn't be eligible for the Biden assistance once it is not blocked--if it has been approved before.  Maybe you'll have to submit another application?

Could you be eligible for PAYE, REPAYE, or even PSLF?

[Bmom]

I would be yes, but I just don't want the interest to start yet. It would be near 8%

[MeredithLepore]

At this point it is probably best to wait to consolidate until you know if your loans will be forgiven, which you may learn in the next few months. If not, then consolidating your debt at that point will be a good move. It could help you secure a lower interest rate and help reduce your credit utilization. That said, you will still need to budget for monthly payments. Start setting aside money now, so that when payments unpause, you can afford to begin paying off your debt in a timely manner.

[Bmom]

Thank you for the reply. And most definitely. I'm actually budgeting that soon and going to start paying it down next month before the pause ends anyway. I was just cleaning up my credit a bit first. I want to dent it before the pause ends. If the forgiveness goes through, I'll get it back, and if it doesn't,  there will be a lower balance to hit with interest.