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Does consolidating student loans improve credit score

does consolidating student loans improve credit score-20

Now you can pay for college the smart way with three great repayment options and competitive interest rates!

If you have bad credit, a federal student loan is the best way to get a student loan without having a cosigner. Watch this short video to help you get started right now.If you have good credit but no cosigner visit this page to get started Eligibility Most students are eligible for some type of federal aid regardless of income and whether or not they have a cosigner.To qualify for federal student aid, you must meet a few requirements.Common federal loans include Direct subsidized loans, Direct unsubsidized loans and Perkins loans.You can find this information in the resources referenced above.Instead of making multiple payments to multiple lenders, the borrower only has to pay off the new consolidation loan, says Michelle Pezzulli, vice president of operations for Credit Union Student Choice, a student lending service provider in Washington, D.

C."That new loan will have its own interest rate; it will have its own repayment terms; it will have its own terms and conditions," she says.

If you have bad credit and no cosigner, your best bet is to apply for federal student aid.

Most federal loans are based on financial need and do not require a cosigner or credit check.

In addition, the terms of loans may change between the time you access this information through RBFCU and the time you apply for a loan.

Therefore, we recommend that you contact the lender to obtain current terms and conditions and carefully review any proposed terms and obligations.

This can be attractive to borrowers because the consolidation frequently results in longer repayment periods and lower monthly payments.