Can consolidating student loans help your credit

29-Apr-2016 07:46

Not only can consolidating your student loans potentially lower your monthly payments and perhaps save you some money, doing so also has to potential to help your credit scores.Here are two reasons why consolidation might be worth considering. Each disbursement of funds you received will typically be reported on your credit reports as a completely separate account.For many consumers this could mean you took out a new loan every single semester during your undergraduate and (if applicable) graduate studies as well.

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Perkins Loan repayment starts 9 months following graduation, witha fixed 5% interest rate.

Interest rates are higher than federal student loans, but still fall below most other types of private financing (home, car, etc.) The Federal Family Education Loan program (FFEL) is a now-defunct lending program designed to provide American college students and their families with federally backed student loans. Perkins Loans Perkins loans are federally funded loans administered directly by your institution of higher education (IHE).