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Should I consolidate or rehab?

New Member

Should I consolidate or rehab?

Not really sure how to start off. I filed BK7 back in 2013. Have built my credit up to the mid to upper 700s. I have a Navient consolidated student loan FFELP that is about 18k (paying on this since 2012 - and paid almost half off so far). When I took that loan consolidation out I presumed it included all of my student debt. I even remember Navient telling me that back in 2012. When I checked the StudentAid website I see that I have a few other older defaulted loans (2001-2004) listed there and the current Navient Loan I have now.


if I consolidate the loans all together (including my current Navient) with Direct Loans (StudentAid) will that report a new loan on my credit and show the past default status? None of those old loans are on my reports.


Would it make more sense to rehab? Thinking I should at least move the Navient over in case of any type of foregiveness? 

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Super Contributor

Re: Should I consolidate or rehab?

I would recommend rehab just because getting those old tradelines on your account is (usually) good for age/depth of your credit file.  They will not show up as default after you rehab (it's removed) and the lates are too old so they wouldn't show up either.

Consolidation is also an option - it will just give you a new tradeline.   If you're not looking for a mortgage any time soon, it will only be a minor ding on your credit score for the first year or so.

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