I have a whole slew of Student loans...

[Apex_predetor]

My question is how my credit rating will be effected after I consolidate my gov. student loans?

 

I have a whole bunch of federal student loans that are in deferment right now, but my consolidation is set to be complete right after the deferment date is up. If I close all those small SL accounts and put them into one larger one; how will it effect my credit from closing like 15 accounts??

 

THanks

[Saria]

I wouldn't expect to see much of an effect at all.

[wideeye]

Your score WILL improve if all of your other finances are good and as long as your payments are on time.

I consolidated nearly 5 years ago on the graduated plan & my score was great.

Student loans with good payment history - are looked upon as favorable debt, since they cancel on death or disability(they do not claim on an estate).

Keep in mind though, that monthly payments are included in with the rest of your debt load.

I own a home, several cars, etc. & am very blessed in this current economy. My mtg rate is at 3.25% & FICO was in the mid 700s

Only when some Sallie Mae lender came out of the woodwork last year & not only claimed my legitimate student loan lender transferred a loan to them (totally false - I only had one lender) but tried to garnish my wages despite a letter from my legitimate student lender stating they were servicing that same loan and it was now in consolidation with 20 others! - only then did my credit get bashed. Even so, I reconsolidated & now it's just a matter of the CRA's catching up with everything.

Consolidation will also help you keep track of your loans & may prevent some wacko scam company like SLM from claiming ownership

down the road which would really mess your credit up!

Edited June 22, 2009 by wideeye