https://www.finaid.org/loans/creditscores.phtmlThis site seems to contradict the "multiple inquiries about private student loans won't hurt your FICO score" line of thinking.
finaid.org wrote:
How do Loan Applications affect Credit Scores?
Every loan application or "inquiry" has the potential to reduce your credit score. According to Fair Isaacs, the company that produces the FICO score used by most education lenders, one "inquiry" will generally result in a 5 point reduction in the FICO score. However, since people with six or more inquiries are eight times more likely to declare bankruptcy than people with no inquiries, it is best to keep the number of inquiries small. Also, if your credit history is short or involves very few accounts, an inquiry is likely to have a bigger impact.
On the other hand, the credit reporting agencies do account for "shopping around" behavior for auto loans and mortgages, but not for education loans. When you apply for a mortgage or auto loan, they ignore any current inquiries within the 30 day period prior to scoring and treat any past inquiries within a short period of time (e.g., 14 or 45 days, depending on the version of the FICO score) as a single inquiry. This compensates for the impact of shopping around. They do not say whether applying for different types of loans (e.g., credit card, mortgage, student loan) counts as separate inquiries even if they are within the shopping around window, but that is likely the case. So the best advice is to apply for all your mortgages and auto loans within a short time period (e.g., a week or two) and to not apply for too many loans.
Warning: Fair Isaacs says that while they conflate inquiries for auto loans and mortgages, they do not yet have enough historical credit data to do this for private student loans. This is partly because private student loans are relatively new and partly because lenders have not been distinguishing private student loans from other forms of unsecured credit. In the mid-1990s, total private student loan volume was about $1 billion, and few borrowers applied for more than one loan. So you still need to limit the total number of private student loan applications and to apply for the loans in a short time span. More than five inquiries is likely to reduce your credit score enough to have an impact on the interest rates and fees for subsequent applications. More than eight inquiries will definitely have an impact on the interest rates and fees. FinAid recommends limiting your private loan applications to one bank, one non-bank specialty lender and the nonprofit state loan agencies in your home state and the state where your college is located.