Consolidating Student Loans that have late payments on credit reports

[Anonymous]

Hi All, 

I have had little luck getting myFedLoan late payments removed.  I was late as a result of a divorce and the impact it had on me financially.  I was able to have a forbearance put in place, but it wasn't retro.  

Because I have 8 separate loans, it makes sense for me to consolidate them.  I assume that will close out the loans with myFedLoan as I move it to another lender.  Will the late payments on the closed account still have the same impact on my credit score, regardless if the loan is showed as paid in full?

Thanks for your help.

[dragontears]

Sorry to say, but the lates will have the same impact if the account is closed or open. Consolidating your loans will not increase your score, in fact some experience a score decrease after consolidation due to the new account/loan showing on their reports

[Anonymous]

Thanks for the input. I kind of figured that.  Still easier to manage as one payment vs. 8, so I'll take the hit now.  

[dragontears]

There are tons of good reasons to consolidate student loans, and ease of payment ranks pretty high (right behind lower APR) so kudos to you

[Anonymous]

Federal loan late payments must stay on there by law, though some have had success getting them removed with a retroactive forbearance.
If you consolidate my understanding is this created a new, large loan. The old loan tradelines do not get removed from your credit report. In addition to your AAoA/ AoYA going down eventually I also believe there new starting balance of the loan will be what it is now, putting it at 100% utilization. Lastly you would become ineligible for some repayment plans and protections.

[beutiful5678]

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@Anonymous wrote:
Federal loan late payments must stay on there by law, though some have had success getting them removed with a retroactive forbearance.
If you consolidate my understanding is this created a new, large loan. The old loan tradelines do not get removed from your credit report. In addition to your AAoA/ AoYA going down I also believe there new starting balance of the loan will be what it is now, putting it at 100% utilization. Lastly you would become ineligible for some repayment plans and protections.

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I know this is an old thread but I just wanted to correct this information in case anyone comes across it in the future - a person can still be eligible for repayment plans and protections if they consolidate their loan with the Department of Education. (I know because I consolidated and my consolidated loan is currently on an IBR repayment plan.) Loans that are consolidated through a private lender are subject to that lender's terms and are not eligible for federal student loan repayment plans and protections.