On my credit report I have like 8 or more loans and it looks horrible. It says their all in good standing, but I still cannot get anything such as credit cards, because of the loans. So I figured if I consolidate it would look so much better. Can someone explain to me in laymen terms about consolidating.
2007-05-01 06:16:51 · 5 answers · asked by Krys 2 in Education & Reference ➔ Financial Aid
Unfortunately, as of June 30th 2006; you are no longer able to consolidate your federal student loans while in school. You are eligible to consolidate your federal student loans 90 days from your graduation date, if you have withdrawn from school, or if you going to school LESS than half time.
You are correct in assuming that consolidating your federal student loans will improve your credit score. Instead of having 8 different loans on your credit report, it will appear that those 8 separate student loans have been paid off by one student loan consolidation.
The student loan consolidation process if very simple and does not consume very much time, you may have experienced some of the phone calls already. Since consolidation of your student loans is a government program the nice thing is the interest rate is regulated by the federal government so the student loan companies offer the same lowest interest rate possible across the board, which cuts down the "shopping around" time.
2007-05-01 09:38:50 · answer #1 · answered by Student Loans 4 · 0⤊ 1⤋
Student loans are a fact of life for most college students from the middle class. It is a really bad idea to consolidate your student loans while in school especially if you are planning on going for your masters degree or have another semester or two to go. Once you consolidate your student loans, you lose your grace period on not making payments which is for six months after graduation. In addition, there is a strong chance you might not be able to consolidate your new student loans into a new consolidated student loan. It will probably not effect you being able to get a job after graduation because my brother changed companies after he got his MBA which he paid for with student loans. Good luck!
2007-05-01 12:13:11 · answer #2 · answered by dawncs 7 · 0⤊ 0⤋
If your credit score is based on debt to income ratio, consolidating your loans will not improve your score. The only way to improve your rating will be to show a solid payment history and get some of them paid down. A consolidation loan is just a single loan in the amount of your total loans and that is where the ratio determines your ability to pay for other debts. A single large loan (the others, btw, will show as loans paid off, they don't disappear) in the same amount has the same effect as several smaller ones. You may want to speak with a credit counselor about your situation first rather than incur more debt with credit cards.
2007-05-01 08:16:58 · answer #3 · answered by mickiinpodunk 6 · 0⤊ 2⤋
Yes you can, but after you consolidate you need to request a deferment on that loan. If you need more of a professional answer, you can click on the link below.
http://salliemae.com/
2007-05-01 09:22:06 · answer #4 · answered by Kenny J 2 · 0⤊ 0⤋
a million) you could't have your funds deferred till you're surely enrolled and at present taking instructions. 2) in case your loans are in antisocial prestige, you could't prepare to have them deferred.
2016-11-23 20:20:38 · answer #5 · answered by keetan 4 · 0⤊ 0⤋