A few things to think about if your considering consolidating your student loans:
A consolidation loan lets you combine all your student loans into one, allowing for a single monthly payment. On top to having only the single payment, you also get a fixed interest rate for the life of the new student loan (consolidation loan).
One way a consolidation loan can be helpful is to renew student loan deferment rights. If you’ve been out of college and are having trouble making your student loan payments, a consolidation loan may be worth looking into.
If you have federal student loans, the majority of those can be consolidated under the Federal Direct Loan Consolidation program. If you have private student loans consolidation might not be an option, as many student loan lenders are trying to reduce risk in these economic times. So if you do have private student loans and are wishing to consolidate, simply check with your lender.
There are no fees or costs to consolidate your student loans, but with that being said… Stafford and PLUS student loans can charge a fee that is deducted from the disbursement check.
As with most things, the sword cuts both ways… consolidation loans can have their disadvantages. Consolidation of your student loans typically extends the repayment period, thus the overall cost of the loan will be higher.
Share this Student Loan Information or Comment!
| Share |
