Invest wisely in your education, and those loans should pay off in the form of higher income over time.
But if you mismanage student loan debt, your credit score could suffer—and that could have a big impact on your financial future. Do I need a good credit score to take out a student loan?
If you are considering consolidating your loans, one mistake that you definitely want to avoid is combining your private loans with your federal government loans.
The primary reason is that no matter how good the rate or terms offered by a private loan consolidation, they almost never will be as good as those offered by a federal government consolidation.
We’ve got you covered with our Student Loan Smarts blog series.
Our expert tips and hacks will help you save money, pay off loans sooner, and stress less about student loan debt.
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.
Federal loans don’t take credit scores into account, which is why every borrower gets the same interest rate regardless of financial profile.
There are many companies looking to take advantage of people struggling with their student loans.
It is critical that you do your research before you make any student loan consolidation decision.
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.