Consolidating Federal School Loan
Date: Thu, 01/12/2006 - 19:59
I have been paying my school loan as promised for over 4 years. I keep getting offers in the mail to consolidate for a lower interest rate. Is this advisable? Would doing something like this negatively impact my credit score?
Kimberleena,Welcome to forums :DConsolidation is definit
Kimberleena,
Welcome to forums :D
Consolidation is definitely a good option for federal student loans. Student loans are such liabilities that cannot be discharged through bankruptcy, nor do they have any statutes of limitation. So it's always advisable to consolidate student loans, before you fall behind.
Quote:
Would doing something like this negatively impact my credit score? |
No. Federal consolidation loan is a new loan that replaces all your student loans that you owe. The interest rate of this new loan is considerably low. As a result, your monthly installment decreases and you become debt free fast.
Once you apply for a consolidation loan, all your previous loans would be paid off by this new loan and you will owe just one loan thereafter. No negative entry will be there in your report and it will definitely have a positive impact on your credit. That is why student loan consolidation is regarded as a nice tool to improve your score.
Hope this helps, feel free to post your queries in forums :D
This topic locked to prevent spam abuse for a short period - Mik
This topic locked to prevent spam abuse for a short period - Mike
