Does consolidating student loans hurt your credit
You cannot consolidate private student loans with federal student loans, and you can only consolidate the loans you hold in your name; this means that you cannot consolidate your own loans with your spouse's or with loans your parents may have taken out to finance your college education.Note that some consolidation pros apply just to federal loans or just to private loans.So overall you'll be paying about the same or perhaps just slightly more for your new, consolidated loan.Marisa is paying 3.6% on a ,500 Stafford loan and 6.8% on a ,500 Stafford loan.Even when you are applying through the same lender, you are basically taking out a new loan each semester or year.Each of those loans is a separate account, so it is standard practice for students to have multiple loans reported in their history.
Instead of having multiple loans and loan payments, you have only one.
To consolidate student loan debt, you get a single loan that is then used to pay in full your outstanding debt from the various lenders who provided you with student loans.
By doing so, you "consolidate" your student debt into a single loan.
This is one reason that, if you have both types of loans, you may want to consolidate them separately (see below).
Also: You can also always keep separate a single loan that has especially good borrower benefits.