Student Loans - Consolidate b/c I have too many open accounts?

[Anonymous]

The only debt I have is student loans. My student loans are divided among 12 accounts. This is hurting my credit score because I have "too many open credit accounts". It's not like I have 12 credit cards...these are student loan accounts. Nonetheless, I really do not want to do loan consolidation. What options do I have for reducing the amount of "open accounts"? I will graduate next month and, pending a job offer, plan to save to pay off my loans on a 5 year plan.

If say, 4 of my loans are from the same company, why can't they put it together into ONE loan amount/account?

Any suggestions you have would be very helpful.

[junior88]

They cannot put them all together as each semester is a new disbursement which equals a new tradeline. Call the DOE and do a consolidation, if you only have stafford loans that will get you down to 2 tradelines, sub and unsub.  Best you can do.

[laz98]

if you are planning to pay them off soon anyway, i wouldn't bother with consolidation.  it is unlikely that the number of accounts is dragging your score down significantly, since installment accounts weigh less heavily on your scores than revolving accounts.  not saying it isn't hurting, just that it's probably not that bad.

[Jazzzy]

You can consolidate them all with Direct Loans...both subsidized and unsubsidized into one loan. The interest rate is calculated by a weighted average, and you will end up with one tradeline.

I consolidated when I graduated last year. It was well worth it. If I were you, I'd want to be making one loan payment per month for the next 5 years rather than making multiple payments each month. Multiple payments mean multiple opportunities to mess up...and, I don't mean you messing up...I mean the lenders. If something happens...you get hurt, you lose your job, etc....you don't want to have to go to several lenders for deferrment or forebearance.

I agree that you shouldn't worry about having "too many accounts." I've gotten that remark at times, too, but it doesn't seem to affect my score. However, I like having just the one payment and the one lender to deal with....because I want things as easy as possible.

[Anonymous]

Thank you all. This has been very helpful. I will look into loan consolidation during my grace period.

Thanks again.