Does consolidating student loans hurt my credit score
If you have all Direct Loans, you can even apply by phone.
Besides basic personal contact information, you’ll need to be able to provide data on the type of loan you have, its balance, and the current loan holder.
In those cases, you may be able to have another go at it.
With loan serialization, a single lender buys your student loans and “stacks” them; you maintain your original terms and interest rates, but pay the loans off one at a time, starting with the loan with the worst interest rate.
The key terms for federal consolidation loans do not vary by lender: no application or origination fees are allowed and there are no prepayment penalties.
Federal law sets the period of time for paying back the loans and sets a ceiling on the interest rate.
Yet despite the appeal — and its popularity — student loan consolidation isn’t for everyone.
Here are some frequently asked questions and answers that may help determine if it’s the right move for you.
Unlike with refinancing, serialization won’t lock in a good interest rate. You shouldn’t pay origination or any other fees to get a consolidation loan.