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Rehab v Consolidate


ericasf
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I have read so much information on student loans and consolidating and rehabbing.  Which one is better credit wise?  Rehab?  I want to repay the loans but am unsure which way to go?  How soon would repayment affect my credit score? 

Thanks for any help that you can provide.  I'm thoroughly confused at this point.  I want to make sure I'm contacting the best place to start repayment and gain the best benefit credit-wise. 

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Depends on the circumstances. If the loans are current then consolidation under the new govt program may be the best strategy to extend the term and lower the monthly payment.

 

if on the otherhand the loans are late or in default the question becomes how late? or when did it go into default?

 

If within a certain window you still have options from the govt. If however they are old as in 5 years plus defaulted the options get tougher.

 

Post the conditions here and I'll do my best to guide.

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Hi there!  Thanks for responding!  I actually just ended up submitting my accounts for consolidation.  They were both in default for a while. 

 

On my credit reports, it shows as follows:

 

TransUnion

Direct Loans - Current, Paid as Agreed.  Remarks:  Transferred to another office.  High balance:  1750

Direct Loans - Current, Paid as Agreed.  Remarks:  Transferred to another office.  High balance:  3150

Direct Loans - Current, Paid as Agreed.  Remarks:  CLOSED  High balance:  4875

 

Experian

US Dept of Ed - Collection Account.  Recent Balance:  2853.  Statement:  Loan permanently assigned to gov't

US Dept of Ed - Collection Account.  Recent Balance:  1557.  Statement:  Loan permanently assigned to gov't

US Dept of Ed/Direct Loans - Paid, Closed.  Recent Balance:  0. 

 

Equifax

US Dept of Ed AFSA - Pays as agreed.  Balance:  0.  Account Activity:  Transferred/Sold  High Balance:  3125

US Dept of Ed AFSA - Pays as agreed.  Balance:  0.  Account Activity:  Transferred/Sold  High Balance:  1750

US Dept of Ed AFSA - Pays as agreed.  Balance:  0.  Account Activity:  Transferred/Sold  High Balance:  4875

US Dept of Ed - Current Status:  blank.  Balance:  1558.   Account Activity:  Blank  High Balance:  1750  Comments:  Collection Account, Student loan assigned to gov't

US Dept of Ed - Current Status:  blank.  Balance:  2857.   Account Activity:  Blank  High Balance:  3000  Comments:  Collection Account, Student loan assigned to gov't

 

So I have applied for a consolidation loan so I can start paying these off.  I figured that was the smart way to go but I'm not sure.  I have to clean this up because these are the last things floating around on my credit report and I want to be able to buy a house.  So what will a consolidation loan do for my credit report?  And do you see any clean up that I should be doing here that can help raise my score a little in the meantime?  The way these loans are reading on my report, it's showing almost double of what I actually owe.  I owe around 4.5k right now. 

 

Any advice would be greatly appreciated! :-)

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