Loan consolidation

[3rdMolarRoller]

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I know that when you consolidate your credit cards it screws up your credit record bad...the bank pretty much views it as just a step up from bankruptcy.

Anyways, when I worked for citibank I never came across a client with a student loan consolidation. Does consolidating your student loans screw up you credit like consolidating unsecure debt (i.e. credit cards)?

 

[3rdMolarRoller]

Ok, took sallie mae 2 weeks but they got back to me. Here is the answer to the above question from sallie mae:

Dear Brocnizer2007,

Thank you for your inquiry and your business with Sallie Mae Servicing, a division of Sallie Mae, Inc.

Consolidation of student loans does not have a negative affect on your credit report. Unfortunately your loans are not eligible for the consolidation as they are in the In School status. When the 6 month Grace period begins on your loan you may apply for the Smart Loan consolidation.

Sincerely,

Customer Service

 

[drPheta]

I have read that the best time to consolidate your loans is about 2 months before your grace period is up. That way, you take full advantage of the student circumstances and save up as much money as possible. I've also read it doesn't mess up your credit, since this is an educational loan. It's not consumer debt.

Not to thread jack, but I feel this is important and relevent. What loans can we consolidate? All, only government, some private and not others...what's eligible and what isn't?