Are there any minimum balances required to consolidate?
Some lenders require a minimum balance before they will accept a consolidation loan. Typically this is $7,500, although some lenders will allow you to consolidate with only $5,000 in loans, and the Federal Direct Consolidation Loan Program does not have a minimum balance. • Does consolidation affect my credit rating? No. Education debt is considered “good debt”, as it represents an investment that generally increases your ability to earn money to repay debt. Even though consolidation may increase the term of the loan, it does not appreciably change repayment behavior. (Defaulting on your education loans, on the other hand, will negatively impact your credit rating.) • How do I go about consolidating my loans? Although the repeal of the single holder rule means that you can consolidate with any lender, it’s generally a good idea to talk first with the current holder of your loans. They have all the paperwork, so the process is often simpler with the current holder of your loans. This es
