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Consolidating Student Loan

Alice Said:

Is there any benefit to not consolidating student loans?

We Answered:

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.

Frederick Said:

can consolidating my student loan give me back my taxes?

We Answered:

No.

Hilda Said:

consolidating student loan for credit report?

We Answered:

Ask your financial advisers and counselors at your college, they should be able to answer all your questions!!!!!!

Wade Said:

Does consolidating your student loan that's in default affect your credit later?

We Answered:

Consolidation is an attempt to reschedule the payments so that the payments are more affordable. The actual consilidation is not what would affect your credit, but the fact that you defaulted on it in the first place.

If they try to take your loan private, you may end up with a really high interest rate and a longer repayment period.

Negative marks on your credit rating stick around for up to 7 years--they show your ability to repay a debt. It will affect you negatively if you try to buy a house within the next 7 years. It could mean a higher interest rate, higher homeowners insurance premiums, it can even cause your car insurance to go up!

Good luck getting back on track.

Joan Said:

Would you recommend a student loan for consolidating outstanding debt?

We Answered:

No, I would not recommend it. Student loans are so you can attend school and get smart enough not to make stupid moves like using student loans for all the wrong reasons.

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