Need advice on consolidating student loans

[Anonymous]

Hello all. I have really been thinking about consildating my student loan debt. I have 3 loans through Fedloan Servicing totaling about $12,000.00 give or take a few hundred dollars.  Is consolidating a good idea?. I am planning on buying a new car in a few months so should I try and consolidate my loans after I get the car or does it not matter. Will consolidating make my score go down or improve it?. I have a ton of questions sorry to bombard you all. 

[mortimerwereback]

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@Anonymous wrote:

Hello all. I have really been thinking about consildating my student loan debt. I have 3 loans through Fedloan Servicing totaling about $12,000.00 give or take a few hundred dollars.  Is consolidating a good idea?. I am planning on buying a new car in a few months so should I try and consolidate my loans after I get the car or does it not matter. Will consolidating make my score go down or improve it?. I have a ton of questions sorry to bombard you all. 

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I used to have Fedloan Servicing (and others) and last year I paid off all of my student loans. I can't tell you what I don't know....and that is how it might affect your FICO score. But what i can tell you is that as a desperate student/adult trying to simply keep current. Carefully, meticulously utilizing my forbearance and deferment months were what was infinitely more important. The months/years alloted to me gave me the flexibility to plan, save and eventually pay off over $100,000 in student loans. My best advice is keep current. And ask Fedloan how consolidation resets either forbearance or deferment months.

[Anonymous]

I think the effect on FICO would be largely due to AAOA. I want to consolidate my loans but I don't think I ever will. I have several student loans and they are all my oldest accounts unfortunately for me. I know they'll still be there as paid/closed for 10 years but I feel like it would really hurt my score. Plus they were transferred to another lender a few years ago so my credit report is like 80% student loans which I hate. I have been working on paying them off and man I can't wait haha!

[Anonymous]

Thank you both!. I am still trying to figure it out. I think I should go for the auto loan first and then do the consolidation in case theres an AA

[Anonymous]

I will be able to answer these questions for you in about a week or so. In May I submitted my Direct Consolidation Loan app to be paid back under the IBR plan. I spoke with FedLoan yesterday who said I can expect myloans to be paid sometime next week. When this appears on my credit report, I will be sure to post to the forum and fully update those in search for these answers.

Reasons I consolidated my loans:

1. To minimize post-BK damage in the event my plan(s) do not work. 
2. To have my loans at one place (I currently have 2 servicers, Navient is reporting as 13 account on my credit file).
3. To have the loans w/late payments PAID IN FULL, in hopes of getting the 18 LATE PAYMENTS & NEGATIVES retracted & removed (Goodwill letters unsuccesful).
4. To be able to show BK court I exercised all my repayment options before filing a motion to re-open my BK case to have my loans forgiven.
5. To bring (2) Direct loans out of default (my other loans are FFEL so I can consolidate w/out making 3 payments).

Yesterday, I removed my (2) oldest land smallest loans (from 1999) off the loan consolidation application in hopes to keep the AAoA the same. I plan to make a few payments, use deferments to buy me time, and then request an Offer in Compromise when my other accounts have aged more. (Like you, 90% of my credit report are student loans.)

Also currently pending...

• Loan Discharge-Disqualifying Status application: Submitted w/documentation April 17. Navient finally filed a claim with the guarantor to buy back my loans on May 17 . June 3, ECMC informed me they must repurchase my loans to review my application so I won't learn of the decision till 60 days AFTER that--ECMC is not paying to buy back my loans until August 17, 2017. So I am looking at (6) months for a decision--don't understand this. I applied for loan consolidation on May 16.
• Ombudsman was forwarded my complaint: After talking with ECMC, unable to get direct answers from the guarantor to Dept. of Education, and considering filing Borrowers Defense, I submitted a complaint fully explaining all the details with some documentation of the last 6 years and how I have and am being caused undue harm by all levels of the Student Loan program. I am hoping the Ombudsman will be able to help me reduce my student loan debt, discharge the loans falsely certified, and remove the late payments still present on old accounts.

Worse case...my loans are consolidated and I have to pay my attorney to go before the BK court to request the loans be included in discharge. After reviewing what is needed to prove Undue Harship to the BK court, I believe I have a good chance to have my loans discharged. However, I lack the confidence wiht my current BK attorney and may need to retain someone new and experienced with student loan discharges.

The longer this takes, the more I am leaning this direction. If no progress is made by the time I pay the last 2 payments owed to my BK attorney, I intend to move forward with the motion to re-open my BK case. 

[Anonymous]

Oh awesoem. Yes please keep me updated. I hope everything works out in your favor!

[Anonymous]

Hi! Any update on the effects of consolidation? I recently applied and I have been wondering the same thing as the OP. 

[scvbd99]

Will consolidating the 3 students loans ends up resulting in a lower overall interest rate and lower total monthly payment?