Does a student loan consolidation depend at all on the credit worthiness of the borrower? I am talking specifically about Federal Stafford loans. In other words, can a person with real stinky credit qualify for consolidation? Second, if all the loans are now current, but have some late pays in the past, will this cause problems with the consolidation?
It doesn't matter what your credit is like Your loans must ALL be in default before you can consolidate them in a new rehabilitation loan program.
No credit check is done for school loan consolidation, so your credit history doesn't matter. As far as I know as long as you are current on your loans you should have no problem consolidating. Wait until July though if you can. Rates are going to drop then. Kevin
I agree.. You should wait.. i am waiting.. They are anticipating that rates could go low as 4% fixed if you consolidate... You'd be better waiting the 2 months
Thanks for the imput. I already knew about waiting until July 1. This is for my son - his credit stinks because he is not careful about paying bills on time. Very smart but not at all organized. All bills are current. I was just asking this now in case he needed to get started cleaning up his credit before July 1. He needs to get motivated, and I thought this might be what he neded to get going. He is making real good money now, and the 4% sure would help to pay this off a lot quicker.
Latest 91 Day T-bill rate (5/2/02) was 1.76%. Add 2.3% to that if you loan was after 7/98 or 3.1% if you loan was between 7/95 and 6/98 and you come up with the new interest rates of 4.06% and 4.86%. Pretty good compared to the 5.99% and 6.79% they're at now. BTW - 91 Day T-bill's been between 1.55% and 1.85% since February. Hopefully it'll stay there for 1 more month. The issue date that will set the new school loan rates will be 5/30/02. 4 more weeks till good rates! Kevin
Mine are way older and I just did them at 7%. Ouch! But I dont owe much and expect to pay them off in Dec.
