Does consolidating my student loans hurt my credit
However, federal PLUS loans do require that borrowers not have an adverse credit history, which is defined by Fin Aid as “being more than 90 days late on any debt, or having any Title IV debt within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off.” For private lenders, your credit score is usually a key factor in determining not only student loan approval, but also the attached interest rate.In other words, the better your score, the better your rate.It is a little confusing because after you graduate, you probably will write one check to the lender each month to pay for the entire amount you borrowed.As long as you make the payments on time and in full, the multiple student loans showing on your credit report will not have any negative effect on your ability to get new credit.An improved credit score will be important when a person enters the working world and wants a new car, apartment, or charge card.Here are some tips for borrowers that can help them as they enter the job market.Invest wisely in your education, and those loans should pay off in the form of higher income over time.
Student loans were so easy to get in college, and so easy to forget.If you’re considering refinancing your student loans, you’re off to a great start in optimizing your debt repayment.Student loan refinancing can help you save money on interest, achieve more favorable repayment terms, and simplify your monthly payments. If done right, refinancing has minimal impact on your credit. The act of refinancing your student loans doesn’t cause a great deal of damage to your credit.Read the other posts in the series to get all the info you need to make intelligent decisions about your student loans.Student loans are the ultimate double-edged swords.