Re: federal student loan consolidation
Understand that generally speaking, federal student loan consolidation is going to be a non event if your aim is to live a cash based lifestyle from here on.
At the end of the day you will simply be able to organize your various student loan payments into one payment which doesn’t hurt you.
However, for those debt slaves trying to take out a mortgage, remember when we showed you how having student loans is the only credit history you need for being approved for a mortgage?
When you consolidate your student loans, the old loans are paid off and a NEW loan is created on your report containing those balances.
Meaning this will lower your average account age and show a reduction in that account history.
It will also create a hard inquiry on your account that definitely affects the debt you’re trying to take out.
Now you know.
Note: if you extend your term in any loan consolidation, student loan or otherwise, you need to be slapped with a wooden dildo. Being impatient and going into debt is what got you here. Staying in debt LONGER is not going to get you out.
I need you to go sit in the corner and think about your actions.