Does consolidating student loans help credit score
You can take the student loan interest deduction on your taxes and save a couple thousand dollars!Rather than spending all of your money and then some on student loan payments each month, you can instead save that cash for something fun or to invest in your future.Besides the immediate benefits of consolidating your student loans, there are also several long term benefits you should be aware of including: By consolidating right now, you get to “lock in” a much lower interest rate than your student loans probably had initially.This will help you save considerable money because more of what you pay will be going toward paying off the principal rather than just paying the interest.
You’re score will also improve because the new loan has a lower interest rate than the previous ones.
Legitimate lenders do not offer private student loan consolidation products to borrowers without acceptable credit history.
But if your credit is damaged and you still want to consolidate your private student loans, one possible solution is finding a creditworthy cosigner for the new loan.
Which Federal Loans Are Eligible For Consolidation? Your loan status must be in one of the following four categories: What Are My Direct Consolidation Loan Repayment Options?
The government is an ideal lender because its goal is to make it possible for you to repay rather than to turn a profit, which is not true of private lenders.