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Consolidating Student Loans


duncja
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Yes. Single payment and slightly lower interest rate.

Well in this case, they're all paid through the same portal as one payment despite being 6 different accounts. Wouldn't this hurt the average age of of credit as I'd be closing 6 older accounts and opening 1 new one?

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I don't know how it will affect your credit score. I got screwed on my taxes because there was a small cap on the deduction you could claim for student loan interest the year I consolidated, I think it was like $2500 that year, when I technically could have claimed thousands more because the lender which consolidated my loans paid off the balance to take them from the other lenders. So that was wasted.

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Well in this case, they're all paid through the same portal as one payment despite being 6 different accounts. Wouldn't this hurt the average age of of credit as I'd be closing 6 older accounts and opening 1 new one?

Intitally yes but over time it will build back up, plus having the lower payment should help your DTI which carries almost as much weight as your credit score.

Also when you do a consolidation yopu could be eligable for some loan forgiveness if you get into some sort of income driven repayment plan.

Basically depending on factors like family size, income, sometimes loan balance after you pay into it in a qualiifying replayment plan (which all income driven are) . you could get some amount forgiven in as little as 20 years ( if you are a public servie worked it can be as little as 10 years).

The lower your income the more forgivness typically you could qualify for.

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I was going to give some advice here, but I think I'm just going to sit back and watch what kind of misinformation gets floated around.

-falcon56: you're debt to income ratio (DTI), as it pertains to credit score, is not affected by how high your payments are.

Also kudos on suggesting ways to milk the system. Personally, I would have gone with waiting for Obama to forgive the entire loan as my suggestion, but props for telling him that he should lower his income instead.

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I was going to give some advice here, but I think I'm just going to sit back and watch what kind of misinformation gets floated around.

-falcon56: you're debt to income ratio (DTI), as it pertains to credit score, is not affected by how high your payments are.

Also kudos on suggesting ways to milk the system. Personally, I would have gone with waiting for Obama to forgive the entire loan as my suggestion, but props for telling him that he should lower his income instead.

The higher the payment ....the higher the monthly payment is ,the more debt you have.....the more debt you have...........the higher the dti.

on the flip side.... the less debt you have going out ( IE lower payment)... the lower the DTI. from a lenders perspective DTI carries nearly as much weight as the credit score does, and often a low dti will compensate for a slightly lower credit score.

the amount you pay per month DIRECTLY effects your dti.

And NO ONE suggested milking the system....or lowing income.

It is a simple fact on income driven programs the lower the income the higher amount of forgivness MAY be given. It is not misinformation it is actual fact.

But hey please feel free to continue to be the clown shoes idiot you normally are.... we know how good you are at that.

Now back to rational adults talking

https://studentaid.ed.gov/repay-loans is a GREAT resource for consolidation as well as some of the programs I mentioned.

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That's what I'm torn on. It's just under 20,000 through those 6 loans. At this point I was either going to leave as is, use the snowball method, and pay off the lowest total amount loan first, while making minimum payments on the others, and just knock them out that way. I'm just not sure I see a benefit of consolidating. Monthly payments are a non issue, the payment portal makes it easy to pay each month. Doozer, I'm curious what your take is.

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That's what I'm torn on. It's just under 20,000 through those 6 loans. At this point I was either going to leave as is, use the snowball method, and pay off the lowest total amount loan first, while making minimum payments on the others, and just knock them out that way. I'm just not sure I see a benefit of consolidating. Monthly payments are a non issue, the payment portal makes it easy to pay each month. Doozer, I'm curious what your take is.

I would club a baby seal to only have $20K in loans. If you're young and single, just strap down, live lean, and pay it off. It won't take you long.

I owe $94K. Mine is a mortgage without a house to show for it. So I'm paying mine off over 30 years. Until I get a significant raise/make partner, I have no chance of repaying it any sooner. Which sucks because I will pay a ton of interest, but I have no choice right now but to pay it over 30 years.

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20k... Find the nearest credit union and see if they will give you a low interest rate loan... That is what I am going to do once our loans down to 30k in the next 3 months. We will ask for a 18month loan.

I explored this with a big bank and they told me my loans were too big to take on without security. So yeah, if a credit union or bank will give you a better rate, go to them. I was told anything higher than $30K they couldn't give me a loan without some security.

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I explored this with a big bank and they told me my loans were too big to take on without security. So yeah, if a credit union or bank will give you a better rate, go to them. I was told anything higher than $30K they couldn't give me a loan without some security.

That's what first borns are for!

I have heard similar. Can't wait to move the debt to my credit union.

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At least you are using your degree... My wife is not. I try to tell her how to move up and she doesn't seem to want to... She doesn't want to expand her network and randomly introduce herself to people. She works hard, but hard work won't get you noticed anymore. Impact will however.

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Yeah I'm going to have my name on the door one day, whether it be at my current firm or somewhere else. I didn't go through 3 years of law school, incur all that debt, and have to suffer through two bar exams to max out on my current salary. My earning potential is there, I just have to bust my butt and pay my dues. I'll get there. No one is going to hand it to me.

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