Does consolidating student loans hurt your credit

You can consolidate all federal student loans and most private student loans.

The amount of money you are eligible to borrow depends on your college costs for a particular year.

But first you need to be sure if you're eligible to consolidate.

While you do not need to meet any minimum for combining debt under the federal Direct Consolidation Loan program, private lenders and loan companies tend to demand a minimum loan balance.

The new loan typically has a longer repayment period, often as much as 15 years, but may have a lower interest rate.

The result is that you now have a single student loan payment that is lower than it was with multiple outstanding loans.

By doing so, you "consolidate" your student debt into a single loan.

Lenders will often offer loan holders certain benefits (discounts for auto-payments, a record of on-time payments, etc.) for being a good borrower.

If your lender does not provide any benefits, you may want to consider consolidating your loans with a lender who does.

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.

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