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wxgal

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Will consolidating my federal student loans affect my credit score?
I have 12 federal student loans and only 1 month left of the grace period. From what I gather, now is the time I should consolidate. I would like to know how or if consolidating the loans affect my credit score since I am looking to take out a mortgage 3-6 months from now. Thanks for any guidance!

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Consolidaating won't affect your score only missing payments will....but you will be paying FAR MORE interest because you will be lowering payments and extending loan period by several years( minimum 5 years) yes give you a lower monthly payment so helping your debt to income ratio for when you apply for a mortgage in 6 months but costing you several thousand in interest probably 3-5k given you have 12 loans....and  you have 12 students loans and you want to take on a mortgage....your debt to income ratio is going to be too high you give more information I could give you better specifics but.... at minimum you looking at $12,000 in student debt plus living expenses which for the average person adds up to $25,000 with grocceries, car, misc your debt to income ratio to get approved is 40% for most banks ie: you make 60K and more then 25K in debt plus living expenses they will NOT approve you.......and if you make 60K the most amount of house you can afford by your self would be 300K at most.....you want to give more specific numbers on your student debt and salary I will GLADLY give you more help 

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wxgal

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Thank you so much for your response! some specifics: my federal student loan debt is currently $64,000, and  my income is $42K.  I do not have any credit cards or a car loan.  The student loans are my only outstanding debts. I'm interested in an FHA or USDA loan. The three houses I'm interested in are listed at $80,000, $110,000, and $120,000.  also, I have been looking into the income-based repayment plan for the student loans..I know in the long run I'll pay a significant amount more in interest, but according to the repayment estimator on  http://studentaid.ed.gov, my monthly payment would be lowered by nearly 40%. Would selecting that payment plan affect my debt-to-income ratio? Thanks again!

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