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4 Options for Student Loan Consolidation if You Have Bad Credit

student loan consolidation

As a student, life can be messed up sometimes because of hard lectures, many exams and of the course tuition fee. Almost all students face these problems during their study life at Universities. Some of them get loans to repay their fees, and some of them try to repay it by themselves. The struggles for students never ends. In this article, we will write about one of the current student problems which are student loan consolidation. By explaining this topic in depth, you will have the chance to know the details about student loan consolidation as well as four ways how to solve this issue if you have bad credit.

Imagine that you as a student has substantial debt and do not know how to repay it. While having debt, your credit gets damaged that is the reason why so many students are searching for optimal ways to solve this issue. As we all know for the students who have bad credit, it is tough to get a consolidation loan. Before getting into the options that make consolidation process happen, we can go through two main loan repayment options that are available. The first one is federal consolidation and the second one is refinancing of private student loan.

Refinance of private student loans is a program which gives the student a chance to lower his or her monthly debt payment while giving you the advantage of saving money. For this program, the lowest credit score is 680. But the problem is that it is not applied to those people who are not eligible for at least two years of proper work experience and specific monthly earning. Let’s look at the first option and figure out the ways how the student that has low credit can get the opportunity accessing to the consolidation of the student loan program.


What consolidation of student loans means?


student loan consolidation

As mentioned before, there are some minor differences between terms like loan refinancing and consolidation. Student loan consolidation is a term which refers to only those cases in which students are using federal loans for their debts during their studies. If the case is about both private and federal loans and a mixture of both, then it is considered a student loan refinance rather than loan consolidation. A consolidation loan is applying to credit card debts, as well as student loans. During the period of repayment, most of the times for 24 to 60-month period, students try to repay this loan by dividing it in monthly payment structures.

Another case regarding consolidation of student loans is the interest rate. Interest rates can be higher for consolidation loans, and if it is high, it means that you are paying a considerable amount of interest rate monthly rather than for your investment. In this type of situations, it is hard for a low budget student to pay all of that debt by himself that is why, whoever who wants to get a consolidation loan while having little credit, stay tuned, in the next few paragraphs we will give you best available advice regarding this matter.


The relation between loan consolidation and credits

Borrowers can get money from a student loan consolidation program while binding for some rules. Most of the times they are applying for new loans to get less interest rate. For students who have bad credit scores, it is hard to obtain loan consolidation because these two terms are related to each other. To qualify for this program, a student should have a credit score of mid 600s at least. Under 600 credit scores are considered as bad credit standing, and in those cases, you should know these below-mentioned options to qualify for loan consolidation programs.


Reviews regarding credit reports


student loan consolidation

The first option in solving student loan consolidation issue for the ones who have bad credit score is checking the credit report that they have previously. There is a term of the annual credit report which is very important for students. You need to be aware of that report to apply for such programs. While reviewing it, a student can know the negative factors in the report that affecting their credit score poorly. After checking it, students can identify and fix negative items that making their score look bad. After checking you can know whether some incorrect items are holding you back from getting a consolidation loan. If you find one, then do not hesitate writing a dispute for credit bureaus so that they can remove that false information from your credit standing.



Cosigners can help solve the student loan consolidation problem. If you as a student has a bad credit score and want to apply for loan consolidation program make sure to have someone to make them cosigners for your loan. Who can be cosigners? From your close family members to your friends almost anyone can be a cosigner for your loan consolidation application. Make sure that your cosigner has a good credit score; otherwise, it will not help you to solve this issue. This factor also can make you more responsible because in fact if you will not pay your loan after getting it, all the costs will be asked from the student loans cosigner. If you have that kind of person in your life who is willing to help you to deal with this kind of problems, then give them a call and ask whether they can help or not.

History of student’s related loan payments


student loan consolidation

If your score is terrible and you are trying to get loan consolidation, then you can apply to the program by using previous loan repayment history. Creditworthiness is very important for loan repayment programs so if you can submit earlier records of your loan repayment history; then there is a high chance that your application can be approved. If you paid all of your previous loans in time before deadlines, then there is a chance for you to get a new student loan. So, before anything make sure that if you have related loan credit score use it as a tool to show your creditworthiness.


Increasing your bad credit score

If none of these options don’t apply to you, then try to increase your credit standing to get a student loan consolidation. Students always have a chance to repair their bad credit scores. Of course, you need more time for this option than any other. However, it is an effective way to get approval for a loan consolidation program. For instance, if your current credit score is 620 and you need to get a loan consolidation, then just increasing it by 30 or 40 will be enough for you to get what you want. Rebuilding is not always a bad idea because by doing so you are changing your credit standing from bad to average or maybe good and also you are getting a chance to apply for future loan consolidation programs.

As a student, if you need to know more about the student loan consolidation, then read this post and use one of the previously mentioned options to solve that problem. Hopefully, it would be helpful for you to get a better chance to build your future.