Does consolidating my student loans hurt my credit

You can use the following calculator to see what your interest rate would be after consolidation: Fin Aid Loan Consolidation Calculator The bottom line, though, is that student loan consolidation is NOT a route to a better interest rate.

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Prior to July 1, 2006, most federal student loans were issued with variable interest rates that reset each year.

Since then, all federal student loans have been issued with fixed interest rates.

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By the end of this post you will understand both options and have a good idea whether one, or both, are right for you.

The terms student loan consolidation and student loan refinancing are often used interchangeably, but they actually mean two very different things, and they have very different sets of pros and cons.And keep in mind that you can consolidate a single loan all on its own, so you don’t need multiple FFEL loans to take advantage of this.If you wouldn’t otherwise be eligible for those repayment plans, or if you already only have Direct Loans, then consolidation won’t help you here.Given that consolidation won’t improve your interest rate, why should you consider consolidating your federal student loans? Here are three of the biggest reasons to consider consolidating your federal student loans.The government offers a number of income-driven repayment plans for federal student loans, and these plans are a real bargain for three main reasons: The catch is that only Direct federal student loans are eligible for some of these repayment plans.Federal Family Education Loans (FFEL), which were all given out prior to 2010, are only eligible for income-based repayment (IBR), which is certainly good but often not as beneficial as Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE).

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