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Federal student loans can be consolidated through the Federal Direct Consolidation Loan Program.

Your credit score is not considered for this program and borrowers that are up to date on their payments are eligible.

If the balance on that card is ,000, your credit utilization ratio is 50%.

It is commonly recommended to keep your credit utilization under 30%.

The main benefit of consolidating government-backed student loans is streamlining the payment process.

The interest rate for your new consolidated loan will be based on what your past interest rates were and will most likely not be lower.

It is used as a method of reducing or eliminating debt.

Debt consolidation has the potential to hurt your credit score in several ways, depending on which method you use.

While you can consolidate many different types of existing debt, it is important to first know what the interest rate is on your current loan in order to see if debt consolidation will be helpful.

Payment history is the most important factor in calculating your credit score—accounting for 35% of your FICOWith a debt consolidation loan, it is important to first know what range your credit score falls into.

For people with a "poor" credit score it may be difficult to get approved for a new loan to use for consolidation.

Debt consolidation has the potential to help or hurt your credit score—depending on which method you use and how diligent you are with your repayment plan.

The strategy is considered in situations where people want to streamline the repayment of multiple high-interest debt amounts—often with the hopes of saving money and lowering their debt burden.

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