How to Consolidate My Student Loans with Bad Credit - The Bills.com Blog
Bills.com Blog > Loans Questions > Consolidate My Student Loans with Bad Credit
How to Consolidate My Student Loans with Bad Credit
Question: Can I consolidate my student loans without a cosigner if my credit is not very good?
Answer: Yes! The good news is that almost anyone can consolidate their student loans, even with bad credit. The federal government sponsors a program through the department of education that allows anyone to consolidate their federally backed student loans (most typically, they are Stafford Student Loans but could also be PLUS Loansor Perkins Loans) and approval is not credit based by traditional underwriting standards -- the key is that you cannot be behind or have missed payments. You also must have graduated and you can only consolidate student loans once (typically) in the term of the loans. The exception to this last rule is that if you take on news loans, then you can consolidate again.
The benefit of consolidating your student loans is that you can lock in
a low fixed rate while at the same time extending the duration of the pay-back on the student loans to 30 years... which could cut your monthly payment in half.
If you want to compare rates and terms to consolidate your student loans, you can get matched with several of Bills.com's pre-screened lenders, by applying here:
Student Loan Consolidation Savings Quote
To learn more about
student loans, I encourage your to visit the Bills.com Student Loans Information page at http://www.bills.com/student-loans/
I wish you the best of luck in obtaining the student loan consolidation program for bad credit that you need, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
User Comments
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
© 2006 - 2008Bills.com LLC. All Rights Reserved.
Your One Stop Resource for Saving Money.
1. Posted by amber on Tuesday 30th October 2007 21:27
can i consolidate my loans even though they are in default? im having a tough time with this!
2. Posted by Brad on Wednesday 31st October 2007 08:37
You typically cannot consolidate Federal Student Loans while they are in default. What you can do is to contact your servicer and come up with a rehabilitation plan. This will let you get 'back' to being current and establish that you are no longer in default. The period for rehabilitation varies, and is typically defined by how long you have been in default / delinquent. I believe that the maximum rehabilitation period is 12 months. You can alwasy contact a student loan expert (try the folks at www.FreedomStudentLoans.com) and get precise information.