Start Does consolidating student loans help credit score

Does consolidating student loans help credit score

By the end of this post you will understand both options and have a good idea whether one, or both, are right for you.

Both options have the potential to help you pay your student loans off quicker and pay less interest along the way, but there’s a lot of confusion around how they work, how they differ, and whether they’re right for you.

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While all of the above are good reasons to consider consolidating your federal student loans, here are four things to watch out for.

Consolidating your federal student loans won’t improve your interest rate.

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This can be an incredibly effective way to avoid the negative consequences of default, such as your loan immediately being due in full, taxes and wages potentially be garnished, and a big hit to your credit report, among others.