Hi Heather,

I’ve $27,000 in student loan debt spread out over 6 different loans w/ 2 different companies.  They are 4 stafford; 1 direct unsubsidized, and 1 direct subsidized.  4 w/ 6.8%, 2 w/ 3.5 % interests.  The main reason I’m thinking of subsidizing is to take 6 lines of credit and turn it into 1.  My credit score is low b/c I had issues paying them for the first 2 years and they came close to default, but I have been paying them on time the last few months. 

My salary has increased, and will keep increasing over the next 10 years, so making a $300+ payment a month is not an issue.  I’m just wondering if its worth it and if it’ll help my credit score out enough to justify maybe paying a grand or two more in interest? 

Thanks!

My understanding is that there is an ongoing process to resolve situations where a borrower’s federally-held loans are assigned to more than one federal servicers.  I suggest contacting: Federal Student Aid Information Center (FSAIC): 1-800-4-FED-AID (1-800-433-3243)

Consolidating is one way to get your loans together, but you lose the ability to target higher interest rate loans for more aggressive repayment.