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Is student loan consolidation based on your credit score through student loan company?


  1. What is the lowest credit score I can have to get a student debt consolidation loan? i have a lot of student loan debt and want to consolidate. however, i’m sure that because it is a...

  2. Is there a loan company out there anywhere that refinances under 500 credit score to stop foreclosure? I am in need of refinancing our home. We are currently almost 2 months behind on our mortgages. We stopped...

  3. Student loan consolidation and taxes? If I consolidate my student loans with a private bank can I still write of the interest as a tax...

  4. What is the best student loan consolidation company? Recently, I consolidated my student loans (undergrad, grad school loans). After I received the final break down, it appears that...

  5. What’s the best student loan consolidation company? I’m looking to consolidate a bunch of my federal student loans. I get tons of offers in the mail, but...

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3 Responses to "Is student loan consolidation based on your credit score through student loan company?"

  1. marebear31485 says:
    No, you do not have to have any credit to consolidate your loan. As long as you have a federal loan and you are not a continuous student then you can consolidate. There are many different companies that offer consolidation. They will offer give you the same base rate, they may just offer different “benefits” for consolidating with them. For example, some lenders will offer a 2% cash rebate (2% of your total loan balance) after you make your first payment, some will offer a 1% interest rate reduction after 36 on time payments, etc. Unless you have a very specific reason for consolidating (can’t make payments, no forbearance/deferment time available, cannot do graduated payments, extended repayment, etc.) then you probably shouldn’t consolidate right now. Interest rates are very higha nd once you conslidate and fix the interest rate you currently have you are stuck. It will never be able to be lowered again. If you have any other questions let me know!
  2. Micah Q says:
    No the loans are guaranteed. You will just have to pay a higher intrest, and make small payments prior to graduation.
  3. payingcollege says:
    Federal student loan consolidation is not based on a credit score, but private student loan consolidation is. So, it depends on which types of loans you’re consolidating.

    For federal consolidation it’s not necessarily true that interest rates are high so you shouldn’t consolidate. Your rate will be decided by the weighted average of your current loans. It is true that consolidation isn’t always right for you, but you should do some research to see if it is. Most people consolidate to get a single monthly bill for their loan (as opposed to a bill for each loan) and to extend the payment time so they have a lower monthly payment. Sallie Mae’s site has lots of information and a calculator so you can see what your payments would be.

    Private consolidation will be based on your credit score (just like the private loans were), so if you want to consolidate, try to get your credit history in good order *before* you consolidate and/or find a cosigner with good credit.

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