People with multiple student loans from college often want to consolidate, but they fear it would hurt their credit rating. Most people are very unsure about the relationship between student loan consolidation and bad credit.
Whether or not consolidation is a smart financial move for you really depends on your situation. Because of the complex web of possibly repayment plans and the formula that determines federal consolidation loans ' interest rates, there is no one - size - fits all answer. Sometimes it saves you money and sometimes it doesn ' t. Even if it doesn ' t, paying more in order to secure a lower monthly payment makes sense for some people and not for others. It ' s a highly personal decision.
If you do decide that consolidation is a step you want to take, you might be worried about its impact on your credit. Will consolidation put a black mark on your credit report? And if so, how big will it be? Well, rest assured, because consolidating your student loans will not hurt your credit.
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