Consolidating school loans credit score
My income came entirely from the tips I made waiting tables.It was barely enough to cover all of my expenses and instead of setting up a repayment schedule or requesting a financial hardship forbearance, I decided I would much rather just stop thinking about my loans. I won’t buy things I can’t afford to pay for entirely up front. I have no personal or consumer debt, so it was easy to ignore my one and only source of debt.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
Federal student loans generally have lower rates of interest compared to private student loans, though they may not cover the complete cost of education.
As you weigh the pros and cons, keep in mind that timing is critical.
With just a few exceptions, you get only one chance to consolidate with the government loan programs.
If you took out more than one loan to fund your education, you might have multiple loan servicers.
It depends in part on how your financial aid package was put together, as well as on how your loans have been assigned, bought and sold to other financial institutions.
Student loans are a form of financial aid designed to help students afford a college education.