| If you've got student loans, then please pay close | | | | Myth: Even if I have a high interest rate but I've |
| attention! You're about to learn a lot of valuable | | | | already consolidated before, I can't consolidate my |
| information about student loan consolidation that, if | | | | student loans again to take advantage of a low fixed |
| acted upon, could put a lot of money back in your | | | | rate. |
| pocket after college. | | | | Fact: Not true. You can reconsolidate if you either |
| Myth: Consolidation of student loans is just too | | | | received a new eligible loan since the consolidation or |
| complicated to invest time in! | | | | have left an eligible loan out of the original |
| Fact: While it may seem complicated or time | | | | consolidation. |
| consuming, the process of consolidating Federal | | | | Myth: Student Loan Consolidation will hurt my credit |
| student loans is rather simple and the rewards are | | | | rating. |
| bountiful. In fact, the process has been made easier | | | | Fact: Not true. If anything, federal student loan |
| than ever by student loan companies who will do all | | | | consolidation may help your credit rating, so that you |
| the work for you. They will walk you through the | | | | can have the ability to obtain additional credit for |
| entire process and even help you pick out the | | | | things like a mortgage or a new car! |
| repayment package that's best for you. Student loan | | | | When you apply for any form of credit, such as a |
| consolidation can transform your loans into one, | | | | mortgage loan or credit card, lenders will evaluate |
| simple, manageable repayment package that'll make | | | | your credit score as part of the application process. |
| paying back your student loans easier than you can | | | | Your credit score takes into account the number of |
| imagine. | | | | creditors you have as well as the balance of |
| Myth: If I have a single lender, I have been told I can | | | | outstanding loans. By consolidating your student loans |
| not consolidate. | | | | into a single loan, you can effectively decrease the |
| Fact: No longer true! In June, 2006, the single lender | | | | number of creditors on your credit history, thereby |
| rule was repealed by Congress and President Bush. In | | | | enhancing your overall credit score. |
| fact, a student loan company, OneSimpleLoan, filed a | | | | You'll be happy to know that at most student loan |
| lawsuit challenging the Department of Education in | | | | companies, there are no credit checks! |
| June 2006. That effort was a catalyst in overturning | | | | Myth: The word "consolidation" is frowned upon in |
| the single lender law! | | | | the credit industry. |
| As a result, you now have the freedom of choice to | | | | Fact: Not true. There are two types of consolidations |
| consolidate your student loans with anyone you | | | | in the credit world. One is consumer debt |
| choose, regardless of who your original lender is. | | | | consolidation and the other is a federal student loan |
| Make sure you choose a company that has your | | | | consolidation. Each is very different from the other. |
| best interests at heart all the time. | | | | Consumer debt consolidation is usually meant for |
| Myth: If I consolidate my loans, I must extend the | | | | people who have had trouble paying off their bills and |
| terms of my loan. | | | | can really hurt their relationships with their creditors. |
| Fact: Not true. You can, indeed, maintain the exact | | | | Student loan consolidation, on the other hand, doesn't |
| same terms and monthly repayment amount as your | | | | hurt anything. No relationships are harmed because, |
| original student loans. (This is a good idea, since you | | | | by consolidating all your federal student loans, lenders |
| may be able to pay off your consolidated loan even | | | | will be paid in full and one single new loan (a |
| faster!) | | | | consolidation loan) will be issued in its place. In fact, |
| Myth: As long as I'm in school, I cannot consolidate | | | | your credit rating may actually improve after you |
| any of my Federal student loans until I graduate or | | | | consolidate! |
| leave school. | | | | If there's one good thing that the government has |
| Fact: Not entirely true. If you are in graduate school, | | | | given the American student, it's the option of student |
| you can consolidate your undergraduate school loans. | | | | loan consolidation. If there's anything a student should |
| Also, if you're in a post-graduate program, such as | | | | consider after graduation, it's student loan |
| medical school or law school, you can consolidate | | | | consolidation. |
| your undergraduate and graduate school loans! | | | | |