Consolidating private student loans bad credit

The key terms for federal consolidation loans do not vary by lender: no application or origination fees are allowed and there are no prepayment penalties.

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One major advantage of federal consolidation loans is that borrowers don't need a stellar credit score to qualify, they can apply any time (even if their loan is in default) at Loan gov, and they'll always get a fixed interest rate.To a college grad swamped with multiple student loans that have come due, loan consolidation is an enticing option.When you consolidate, a lending institution pays off your existing balances and replaces them with a new, consolidated loan.Having bad credit — or lacking it altogether — won’t keep you from getting a student loan.Undergraduate students can borrow federal student loans regardless of their credit scores, and parents and graduate students with less-than-stellar scores can get federal student loans if their credit reports are free of negative marks.This can be attractive to borrowers because the consolidation frequently results in longer repayment periods and lower monthly payments.

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