One of the great things about student loans, and consolidated student loans in particular, is the low interest rate. By consolidating your loans you sometimes see a drop in the interest rate by 1-2%. It seems small and insignificant, but if you follow the tips from this article you can actually turn that reduction into profits.

As mentioned above, consolidated loans typically provide you with a lower interest rate than unconsolidated loans. They also offer repayment plans that can extend for up to 30 years. If you are a disciplined person who has a little bit extra money, you can use the money you save on payments each month to earn you cash.

Here’s how it works. When you consolidate, your payments are usually lowered, which means there’s extra money between what you used to pay each month and your new minimum payment. Instead of taking that extra money and spending it on impulse purchases and fun, it would be a good idea to use it to pay off extra principle on your loan. This can drastically cut down on the length of your loan, meaning you’ll pay less in interest. Not a bad idea. But it will only save you money, not earn it.

In order to earn extra money from your consolidated student loans you’ll need to take that extra money each month and invest it into a money market fund that has historically earned more than your current interest rate. For example, if your consolidated interest rate is 6.5%, you’ll want to find a mutual fund that has consistently returned 10-12% or more. Then you’ll earn 4-5% on your extra money every year. And here’s the best part: doing it now will allow compound interest to kick in, so after the life of the loan you’ll have a nice nest egg of profits from the money you were expecting to spend every month anyway.

And that’s not all! Federal student loan interest is tax deductible. So you’ll be able to claim the interest you pay on those loans every year, saving you even more money.

Keep in mind that while all this sounds great, there are risks involved. Although over time the stock market has been stable, there is a small chance you could lose your investment or make less in returns than you’re paying in loan interest. For these reasons it’s best to seek professional consultation before making any sort of investment.

With that said, this method is considered low risk and should at least be contemplated if you’re fortunate enough to have some extra money each month.

Visit School Loans Consolidation Guide for more student loan advice such as facts about your federal school loan and information on how educational loan consolidation works.

Consolidated Student Loans FAQ:

Question: Is there a way to un-consolidate student loans that you already consolidated?
I consolidated my student loans and now am finding out that by doing so I may have voided my ability to defer them in the future. Is there some way to undo this?

Answer: No. Your consolidation loan is binding. There is no going back once you’ve done all the paperwork and the process is complete. However, double check with your lender. I don’t believe you lose deferment options (like if you return to school) but you do lose many cancellation provisions by consolidating.

Question: If I have already consolidated my student loans, is there still a way to “refinance” for a lower rate?
I currently have a 7.625 rate on my consolidated student loans. Is there a refinancing process for student loans the same way there is for, say, a mortgage?

Answer: The regulations for the refinancing of Federal student loans are very different from mortgage refinancing. Whereas you could refinance a mortgage as often as you want (well, sort of), reconsolidation isn’t technically supposed to be possible for student loans. There a a few loopholes, though. The only way you might be able to “re-consolidate” would be:

(1) if you borrow a *new* Federal student loan. If you have another loan that is unconsolidated, you can apply for a new consolidation loan that would combine this new loan with your old consolidation loan. However, this would only lower your rate a little bit since your new interest rate would be based on the weighted average of the rate for your new loan and the rate of your old loan. That said, you won’t be able to obtain a new Federal student loan unless you are a student, so this may not even be a viable option for you.

(2) if you “have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to [you],” you can obtain a Direct Consolidation Loan, which is the other type of student loan consolidation that the federal government offers.

Question: If I consolidated my student loans, would that raise my credit score?
I haven’t consolidated my loans yet b/c I have heard rumors that congress is going to help lower student interest rates, so I’m taking a gamble and hoping the rates will lower. I have 11 seperate student loan accounts. Would my credit score go up if I consolidated, since I would then have 1 instead of 11 accounts? Would it be better in regards to my credit score to leave them as is?

Answer: If you can keep up with your payments on 11 accounts, then that looks better than just having one account. But , if you need to consolidate to lower your monthly payments, do so, but it could take a while to help your credit, especially if you are behind with any of the 11 accounts.

Question: Can you refinance student loans after you have consolidated them?
I consolidated my student loans a couple years ago and got them to a fixed interest rate. I didn’t know what I was doing–I was young and no one explained to me what was going on. Now that I’m a little older, I know that my interest rate is not the best that it could be. I’d like to refinance, but I don’t know if it’s possible since I have already consolidated.

Answer: There’s not much you can do. Student loans are not something that another lender will willingly take on. Your best bet at this point is to call the lender who holds your loans and ask if the rate can be adjusted a couple of points. Very often, after 12 consecutive, on-time payments, you can get a break on the interest.

Failing that, the best thing to do is to voluntarily increase your payment amount. You will be amazed at the impact this will have on your balance and repayment term.

Question: Consolidated Student loans but thinking off paying off the whole loan. Would the consolidator allow it?
I’ve consolidated my student loans, which is around $23,000.00, and today I got the statement from the consolidater giving me the whole amt I need to pay off in 20yr s with their payment schedule. With their payment schedule, I’ll be paying off around $43,000.00 with interest & principles with a payment of $180.00 every month for the next 20 yrs. When my dad happened to see the statement he said he’ll help me out with my student loans. He wants me to call them and tell them I’ve changed my mind and decided not to proceed with the repayment plans and looking for alternative ways to pay off my loans. The problem is I signed the promissory note so now I’m not sure they’ll honor my change of plans. I’m in a big dilemma here and do not no what to do.

Answer: If it’s a federal student loan consolidation you’re talking about, lenders cannot charge a prepayment penalty – which means you can pay more than the minimum each month, or pay it all off at once. Just like a credit card (or a mortgage or any other type of loan), if you pay the minimum each month you end up paying more interest over the term of the loan. Each little bit extra you pay each month is money you’ll never have to pay interest on again.

Lots of students consolidate, because extending the payment term allows them to pay less each month, especially in the first few years out of school when they’re not making a lot of money. Once you don’t need that cushion any more, it’s smart to start paying extra.

Question: If I consolidated all my federal student loans through a bank can I file that loan on my bankruptcy?
I want to file for Chapter 7. I have no assets, about 20k in revolving debt, 10k for a car repo, about 70k in medical bills and about 40k in student loans which I consolidated and have currently deferred payments so they are current but I want to add those to my chapter 7. Does anyone know if I would be able to?

Answer: Yes but you would have to wait at least 2 years or it would be considered fraud.

Question: Is it possible to consolidate student loans that come from different banks? And how would I do that?
I have undergrad student loans from one bank that I consolidated, and then graduate student loans from another bank. I am graduating in August and at that point I would like to have them all consolidated so I am not paying 3 different people each month.

Answer: It is possible but, be careful about it. It could jack up your interest rates. Just talk to your loan officer at either bank and explain your situation and they should be able to help you.

Question: Is there any benefit to not consolidating student loans?
I graduated from college two years ago, and never consolidated my student loans. I believed (possibly wrongly) that consolidating was only important if I wanted to lower my monthly rates but it wouldn’t have made a difference in the total cost of my student loan. My plan was to pay off large chunks of the loan and to have it paid off quickly. Would consolidating have made a difference in my loans, and will it make a difference now even though I’ve been paying the loans back for two years already?

Answer: There’s a lot of hype out there about consolidation, most of it from companies anxious to get hold of your loan volume. The fact is, consolidation isn’t the right option for every student, particularly if they’re not having trouble meeting their monthly payment, as you seem to be doing.

Best thing to do is call your lender, have them run your numbers, and see if there is a benefit to you by consolidating. Rates have increased since you graduated, so you may actually be better off if you don’t consolidate. Most lenders can also include your separate loans on one bill, so if that would make things easier for you, you can ask them about that as well.

Bottom line, you’re doing a smart thing by paying off more than the minimum monthly payment – this will help you pay less interest over the life of your loan and set you on the way to financial health.

If you’re having trouble repaying your private student loans you can get help now with private student loan consolidation payments. A consolidation of student loans both consolidates all your private education loans into one loan and resets the loan’s terms.

Because, for the most part, you can’t consolidate private student loans with federal student loans, the low federal student loan consolidation interest rates would not be applicable. However, it still is possible for you to pay less each month.

You actually have quite a few options that can lower your monthly loan payments.

1. Because your credit score strongly influences your interest rates, if your credit score has significantly risen since you applied for your loan, for example by fifty points or more, you might be able to get a lower rate when you consolidate your loans with a different lender.

After doing your initial research, talk to your current lender and see if they can lower your interest rate on your current loans. They might consider doing this if they see that they could lose your business to a different lender.

2. If you’re a homeowner, compare the interest rate on your variable interest rate school loans to a fixed rate home equity loan rate. If interest rates look like they are going to go up, you may want to get a home equity loan and use the money to pay off your private education loan. Doing this would guarantee that your interest rates will not increase.

On the other hand, it also guarantees that they won’t go down if interest rates fall. And, worst case scenario, you could possibly lose your home, so be cautious with this option.

3. You can consolidate student loans with an educational lender, such as the private consolidation loan divisions of either Wells Fargo, Chase, the Student Loan Network or others.

These companies offer different repayment plans. Some offer up to 15-year term while others offer up to 30-year term. The interest rates they charge as well as fee structures also vary.

Because these differences can amount to thousands of dollars in savings, most people that consider consolidating their student loans do extensive research and even do a spreadsheet analysis comparing the pros and cons of each offer before choosing the option that’s right for them. Luckily, the Internet makes it very easy to get the information you need to make these comparisons.

When you evaluate private lenders consolidation loans, make sure to find out

1. If their interest rates are fixed or variable

2. If there are any prepayment penalties, and

3. Whether or not there are any fees and what they are.

Next, to find out more about private student loan consolidation and for more free information about student loan consolidation, go to http://www.StudentLoanConsolidationReport.com now.

Student Loan Consolidation FAQ:

Question: Student loan consolidation question…?
I have a government loan (the Ford Subsidized Loan) and a private loan (the SELF loan). I was told that I couldn’t consolidate with a federal and a private loan. Is this true? Can anyone give me any insight to student loan consolidation?

Answer: Correct, you are unable to consolidate a federal & private loan into one. Right now, due to economics, it is difficult to get a decent rate with lenders across the board. Contact your Financial Aid office to see which lenders they are currently working with for both private & federal.

Question: Student loan consolidation? How? When?
I am due to start paying my federal student loans back in September. How do I even begin the consolidation process, or possibly deferrment of my loan payments for another six months.

Answer: In the loan consolidation process, all your student loans are brought together into 1. You began by one way only: Call the company that provided your loan and ask them that you want to consolidate your loans. You can ask for a deferment. They can give you 6 months after graduating ONLY.

Question: Private Student Loan Consolidation, a good lender? I owe over 100,000 need low monthly payments?

Answer: Go to the financial aid office at your school and discuss this with them. Many times, they know exactly what to do but no one ever asks them. They may know of lenders willing to take on your consolidation. They may know of other options that can help you.

Question: What to do about student loan consolidation?
I graduated college last May and will begin repayment on my loans starting in November. I have 7 federal student loans, totaling about $62,000 and 1 private student loan totaling about $8,000. Many places are not offering federal student loan consolidation any more, and I only have one private student loan so it doesn’t make sense to take out a private consolidation loan. As of right now, my payments are going to be about $800 monthly starting in November. I can’t afford that! What can I do?

Answer: Because of the student loan reform act many lenders pulled out of the consolidation field. The ones that remain do so on a limited basis. Generally once they reach their monthly quota of loans they stop taking any others. This means you’ll likely need to check sites like http://www.studentloanconsultants.com for their list of lenders every week to see who is or is not offering consolidation loans at that time.

Unfortunately there is no easy way of doing it at this point, but just be patient and you’ll find a lender to do the consolidation.

Question: Is there any way to lower your monthly payments for your student loans after consolidation?

Answer: Usually if you have a reason that you can’t make payments (or full payments), they will work with you. I think some of what they’re willing to do depends on the type of loan and the provider.

Question: Can you help me with my student loan payments?
I seem to have 3 payments coming up. Now I don’t mind paying them back, But the interest rates are way High. The student loan thing doesn’t seem to be helping much in my “being free” idea, because I called every one of these corporations (Citi bank, Sallie Mae, and my federal loan consolidation company). On average I would have to pay for 15-25 years before all this debt is being paid off. Do you have a similar situation or is mine really unique . I am trying to get a clearer picture because most of my papers and applications were filled out by my parents.

Answer: Your situation is anything but unique. I’m paying on my daughter’s student loan right now until she finishes school. I’m only paying the interest on it…and even that is costing me 220.00/a month. When she graduates, she’ll take over the payments, which will probably double because the interest will be included from that point on. Her boyfriend is paying off $300,000 in student loans because he went to law school….I don’t even want to tell you how much some of doctors I work with had to pay back…with interest!!

It’s a sad, unfortunate fact of life if you want a college education.

Question: Whats the best way to go about student loan consolidation?
I have a bunch of student loans and i get a lot of junk mail about consolidating. Who is the best to use for consolidating? What type of payments and interest rates can i expect. I have about 8 different student loans out there, from 4 years of school. Some are private, some are federal.

Answer: Go with a reputable company which has had good reviews. Ask your friends or other grads/students on who they are working with and ask for feedback.

8 loans!? wow… Its probably time for you to consolidate them into one big payment instead of paying 8 loans monthly isn’t it?

Question: Will applying for (and receiving) a debt-consolidation loan damage my credit?
I have numerous debts (car payments, student loans, a few credit cards, and a significant personal debt owed to a friend) that I’d like to roll into one monthly payment (which would hopefully be smaller than the amount I currently pay for each one as a separate monthly bill).

Some people have advised me to apply for a debt-consolidation loan. My question is, will doing so affect my credit negatively? Do they even include student loans in debt-consolidation?

Answer: A debt-consolidation loan is just a fancy word for a “new” loan at the same banks you borrowed from before. It doesn’t hurt your credit because the amount owed has not increased.
A debt-consolidation “service” tries to charge you $1,000 to get lenders to reduce your debts. You make one payment each month to the “service” and they pay everyone you owe. This is an area of business which is 99% scammers so you need to avoid them.

Times are hard today with the economy in such a crisis right now and it can be especially difficult for those that are in college. The price of a college education is not cheap and most students have to turn to loans to help them pay for their college tuition. Many students find that they end up with more then one student loan and this can weigh heavily on their wallets when all of the payments on the individual loans come due. This is where it can be very beneficial for college students to try school loan consolidation.

While loans for students seem to be easy to come by, the information on consolidating these loans may not be known to a great deal of the students. This is something that you will want to discuss with your financial aid department or perhaps go directly to a major lender for student loans to see what your options are for school loan consolidation. Often times, you can take all of your student loans and pay them all off with one larger loan. This allows you to get rid of all those smaller loans by combining them into one convenient payment.

There are many benefits to doing a school loan consolidation. One of the main benefits is that you free up your money so that you are not tied down with so many monthly payments to do. You will also save a great deal on interest rates as when you combine the loans together, you can go with a lower APR so that you end up paying less for the loans in the long run. All of those small payments to many loans can really add up and can take its toll on your wallet. College students are already struggling to make ends meet and stay afloat while going to school so why should they add to it with too many loan payments?

If you find that you re getting tied down with so many loans for your college education, then you may want to talk with a financial adviser at your school. He or she can help you figure out if you can benefit from doing a student loan consolidation. You can also talk with your private bank as well as the lenders that your loans are with. You may be surprised to find out that they can really offer you some great bargains when you opt to combine your loans. It can be helpful to check out what the rates are at different lenders so that you can be sure that you get the lowest rate that you can get. This will allow you to save more money in the long run.

In closing, many college students find that when they do school loan consolidations, they can focus more on their studies so that they can get a better education.

Student Loan Consolidation FAQ:

Question: Which company has the best student loan consolidation rates?
I have a subsidized student loan in the amount of $11,460.55, does anyone know the names of specific companies that have the best consolidation rates at this time? What are those rates?

Answer: The federal consolidation loan has a fixed interest rate, based on the weighted average of the interest rates of the student loans being consolidated, excluding Health Education Assistance Loans (HEALs), rounded up to the nearest 0.125% or 8.25%, whichever is less.

The weighted-average interest rate calculation is based on the official interest rates for the student loans being consolidated, exclusive of any borrower benefit or other special rate discounts.

By law, all lenders are required to use the same interest rate formula for federal consolidation loans. Instead, you should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.

Question: What are your chances of getting approved for Federal student loan consolidation?
Also, Do debt consolidation companies include federal educational loans into the consolidation?

If you have a federal student loan, and the loan company offered a 1800 # for a consolidation company to take the loan and pay it?

Answer: Your chances are prob pretty good to consolidate federal student loans. Don’t consolidate federal student loans in any non-student loan consolidation loans, your interest rate will likely be higher and the interest you pay would no longer be tax deduct able.

Question: Does anyone have a private student loan consolidation with Education Finance Partners?
Wanted to know if anyone is happy with the service they provide. Or are they like Salliemae where they rip you off and charge astronomical interest rates on student consolidation loans.

Answer: Private student consolidation loans are not guaranteed by the gov’t – so they’re a much higher risk to the lender. Therefore, they’re typically based on the credit history of the borrower. It’s unlikely you’d get a significantly different interest rate if you shop around to different lenders.

What you can do is get your credit in as good shape as possible before you consolidate, and/or find a cosigner with good credit. This can help bring the interest rate down. The rates may *seem* high, but they’re probably lower than a typical credit card or car loan rate, plus the interest on them may be deductible on your taxes.

Question: How does student loan consolidation work?
Once I consolidate my loans do I get a sum of cash? I know I have gotten offers that say up to $2000 now if you consolidate. Does that mean I get $2000 for myself, or do they take that off the amount of the loan?

Answer: Generally, a consolidation loan lumps all your student loans into a new loan, with up to 30 years to pay back and a fixed interest rate. It really makes it easy if you have student loans scattered across different lenders/services.

The key word in your statement is ‘up to $2000′, if you have a lower balance, you probably will not get that much as a credit. Yes, you would get a credit, not cash back. And if you do get ‘up to $2000′, believe me, you will pay for it eventually. There’s no such thing as a free lunch.

Question: Where can I find the best deals for private student loan consolidation?
I can find plenty of banks that offer private student loan consolidations loans, but often, many places seem “gimicky.” Any help appreciated!

Answer: Try to aim for grants/scholarships more… they are not to be paid back. its confusing sometimes, but just keep applying. Scholarships usually have a 1 or 2 page application, and require an essay. Take your time with the essay, so yours stands out.

every big (and small) company you see (manufacturer, orgs, corps and groups also) all have grants and scholarships they hand out like candy. Walmart, Kmart, Target, Coke, computer companies etc etc etc

Also contact all mens, womens associations in your state, they almost always have grants & scholarships. What ever field you are going into, contact the orgs, associations etc for them; Also check with professional organizations related to your career interests, such as the American Bar Association or the American Medical Association. they also always have scholarships. Research and dig, call then write. Its all worth it.

OVER apply; it doesn’t hurt to have too many, and the extra funds can help with housing.

Question: What is the Best Student Loan Consolidation and possible incentives to sign up?
I have a series of student loans – a few from Direct Loan Servicing Center, Nelnet and Sallie Mae. How can I get these consolidated with the best rate and are there any cash back perks or other incentives for consolidating these loans?

Answer: Usually there are not incentives beyond the amount of money you’ll end up saving. Before you graduate you should have to undergo an “exit interview” for your loans, and they give you a lot of information there. If you don’t want to wait that long, sometimes the financial institutions that you are borrowing from will have information, so try asking them directly.

Question: What are the current student loan consolidation rates?
What are the current rates, and with the fed cutting rates, what are the chances the student loan rates will decrease as well? And if so, when?

Answer: Depends on the lender. Check the website of the one you are looking at. It will tell you (check the FAQ’s if you can’t find it elsewhere on the site).

Question: What is the best Private Student Loan Consolidation Program (substantial debt!!)?
Is there anyone who knows of any good PRIVATE Student Loan consolidation program? Most lower your payments but do not lower your interest rate. I am looking for a lower interest rate.

Answer: Since these loans are not backed by the government, most private consolidation loans will be credit based, meaning the interest rate will be set based on your credit history, just like the private loans you have now. If you want a lower rate, spend some time getting your credit score as high as possible and/or find a cosigner with good credit. Both can help lower your rate.

We err in treating a student loan as a completely different transaction. However, it is very similar to any other loan and this will help us in defaulted a student loan consolidation.

Education has become very expensive and students are opting for loans to repay their debts. However, more than 30% of all students have or are defaulting on their loans. This scenario is equivalent to a financial suicide, because once default takes place, interest runs at a very high rate and the debt assumes impossible proportions very soon.

There are many people with debt in excess of a hundred thousand dollars. There is no way they can repay the debt in time.

Consolidation may work when the amount is not very high. However, in cases where the borrower has allowed the debt to run away to a high amount, ordinary consolidation will not work. A different strategy is required.

The first thing you should do is obtain information about your credit report and your bad credit score. Only then can you proceed to repair it. There are many programs which will help patch up the mess even if you do not have any prior knowledge or experience in undertaking such transactions.

Bankruptcy? Yes or No?

A common misconception is that bankruptcy is the best solution to counter runaway student debt. Nothing could be farther from the truth. Bankruptcy is a big decision which has significant impact. Such decisions should not be taken lightly.

You should adopt a two pronged approach of bringing down your outstanding amount and also removing the late payment report from your file. Your debt can come down by as much as 40% and the reports can be removed in a span of a few days.

Easiest Option

One of the easiest option is to go in for a default student loan consolidation. However, if this is not possible, bankruptcy is not the only way out. There are other options which can be used to stop the situation from worsening. There are time tested strategies which can help you get a grip on the situation.

Irrespective of the course of action that you choose, you will have to improve your money management skills to prevent such a situation from coming up all over again.

Money management is not as bad and as tough as it is made out to be. There are specialized money management programs which will help you manage your finances in a much better manner. Never feel that the situation has gone beyond your control.

Want to know more tips about Defaulted Student Loans?

Visit: http://www.studentloan-tips.com

Consolidating Student Loans Questions & Answers

Question: Is there any benefit to not consolidating student loans?
I graduated from college two years ago, and never consolidated my student loans. I believed (possibly wrongly) that consolidating was only important if I wanted to lower my monthly rates but it wouldn’t have made a difference in the total cost of my student loan. My plan was to pay off large chunks of the loan and to have it paid off quickly. Would consolidating have made a difference in my loans, and will it make a difference now even though I’ve been paying the loans back for two years already?

Answer: There’s a lot of hype out there about consolidation, most of it from companies anxious to get hold of your loan volume. The fact is, consolidation isn’t the right option for every student, particularly if they’re not having trouble meeting their monthly payment, as you seem to be doing.

Best thing to do is call your lender, have them run your numbers, and see if there is a benefit to you by consolidating. Rates have increased since you graduated, so you may actually be better off if you don’t consolidate. Most lenders can also include your separate loans on one bill, so if that would make things easier for you, you can ask them about that as well.

Bottom line, you’re doing a smart thing by paying off more than the minimum monthly payment – this will help you pay less interest over the life of your loan and set you on the way to financial health.

Question: Is anyone consolidating student loans now?
I just got my first bill from my 3 student loan lenders, and my monthly payments equal about $800 a month. I called each company to see if I could consolidate but there is a freeze on consolidation. Even Sallie Mae wont consolidate the 6 loans I have with their company alone. Do you have ANY suggestions on what I could do to prevent defaulting on my loans?

Answer: If your credit is still decent, i think you should be able to consolidate at least some of those loans. Check out the website below for more information.

Question: Any ideas on consolidating student loans?
I have a ton of student loans, that I’ve been deferring for financial reasons. I have federal loans with Sallie Mae and private loans with Wachovia/AES. Any ideas on how to put them all together so I have one monthly payment, to say a bank rather than various companies, like I have now? Any good banks I should try or talk with?

Answer: Your Federal Student Loans can not be consolidated with your Private Student Loans through the FFELP Consolidation Loan Program. In addition, if you were given the option to consolidate your Federal Student Loans and your Private Student Loans together I would not suggest doing so; if you did do this you would lose all your Federal Benefits on your Federal Student Loans.

You can consolidate your Federal Student Loans and your Private Student Loans separately though. If I were you I would keep in mind that July 1st is the interest rate change date every year, so it would be in your best interest to do so before July 1st. If you are interested in Private Student Loan Consolidation, I would wait until after July 1st when programs are expected to improve in that area.

One thing that you may be very interested in when dealing with your Federal Student Loans is; when you consolidate your Federal Student Loans together you not only lower your monthly payments, but you also reset your Deferment and Forbearance time to zero giving you a fresh 3 years of both. For more information please see the source below.

Question: Can consolidating student loans help credit score?
I have a lot of loans, almost 100K as I am getting my PHD. There are number, about 15 individual loans. All other credit is on time and I make a good living. The loans are in deferrment, but does the number of individual loans affect score that much? Would consolidating and paying something on them each month even though they are in deferment help?

I am not looking for information on loans, only their effect on my credit

Answer: Consolidating the loans could lower the amount you pay each month, and lower the interest rate. Shop around they will fight for your note. It could look better on your credit if you had one loan instead of 4-5 in turn could give you a few more points.

Question: Will Consolidating my student loans help my credit score?
I had 6 student loans equaling a total of $20,000 from 2 different companies. My mistake was i didn’t put them into forebarence in time i was late about 2 months. One of the companies wiped it off my credit, the other showed that i had been late. I decided to consolidate my loans with the company that wiped it off my credit. My question is will this help my credit because with the company that had the late payment the loans will have been paid off and with the other i will have been current on all of my payments? Thanks for the help.

Answer: Your loan won’t show as paid off .. but rather as “sold to another lender”. Also, the detail will also still show for the time you had a loan with them. (ie: payments late, highest balance, etc)

Your credit score will increase w/on-time payments … not by changing the owner of a loan. Prior to consolidating, I was surprised to see just how many different lenders once owned my student loans — though I took them all out from the same company. And all those sales amounst the lenders did not affect the credit score.

Question: Does consolidating student loans impact your FICO score?
I’ve got 10 different student loans so my FICO score reflects 10 different installment loans. Would consolidating them into one loan do anything to the FICO score or would it just be a wash since the total amount of debt wouldn’t change.

My downside is that if I consolidate It will take longer to pay off the loans than if I just leave them alone…. I’m wondering how much my FICO score is being hurt by them. Its currently 762.

Answer: It should improve you FICO score. You have a pretty good score already though.

Question: I made a mistake consolidating my student loans. What can I do?
I had several student loans from various lenders for my undergraduate and masters studies. Because I was tired of paying many payments each month to different lenders, I rushed into consolidating without knowing the facts. Now I am stuck at a much higher interest rate and will end up paying 30-40% more in the end!! What are my options at this point??? How can I get myself out of a bad consolidation?

Answer: If you find a better rate, try to… refinance again

Question: Paying principal on student loans while in school & consolidating?
i just got a federal student loan and i received more money than i needed (but i wasnt sure how much id need at the time) so now that i have the check from whats leftover can i pay that back to the company on my loan before it starts collecting more interest…also i plan on paying all of the interest while in school but was wondering if im also able to pay extra while in school without penalty and is this going to apply to the principal?
also ive seen websites on consolidating student loans and making 1 payment… this made me wonder why someone would need to consolidate student loans?what would cause you to have multiple student loans? is thi something thats based on having multiple lenders, schools, type of loans (sub or unsub.)etc… basically i am trying to understand why youd be billed seperately on loans because i would like to avoid this now so i wont have to worry about consolidating later. any insight would help =] thanks

i know the benefits of paying interest as i said in the question thats what i plan to do…i also plan to pay the PRINCIPAL as well in school & was wondering if theres any penalty for paying on the PRINCIPAL while you are still in school

I also understand what consolidating IS i wanted to know what would CAUSE you to have MULTIPLE student loans in the first place..i even listed some possible reasons that i thought may be the cause for more than one student loan in my question…but i didnt know if any of those were the reason for it and i was hoping someone could tell me as i havent found the answer in any of my research or from any of the answers that ive already gotten…if you have the answer i would love to hear it!

Answer: First of all, what kind of federal loan did you take out? If you took out a Subsidized Stafford Loan or a Perkins Loan, then the government will take care of all your interest while you are at least a half-time student, which means that your principle will not increase while you are in college. If you have an Unsubsidized Stafford loan, you will still be compiling interest on your loan, and it would be wise to save any extra money and start repaying your loan.

As far as consolidating goes, a great option is to go with the Federal Family Education Loan Program, or a FFELP consolidation. Many students have several federal loans; I have three myself. Regardless of how many you have, consolidating will significantly lower your interest rate on your loan, and could eventually save you thousands of dollars.

For more information on FFELP consolidation and the application process, please visit the source below. I hope this helped you out! Good luck!