Q: How Do I Know if I Should Consolidate My Student Loans?
A: I am trying my best this year to respond to everyone’s student loan questions, and especially to answer the most common questions regarding student loans. One of the most common student loan questions is regarding student loan consolidation, when to consolidate, and knowing if student loan consolidation is the right fit.
Student loan consolidation is used to reduce and simplify your monthly student loan payments by “consolidating” all of your separate student loans into one. This can be a great option if you are having difficulties making your student loan payments, however, keep in mind that student loan consolidation lengthens the period of repayment, and increases the total amount you will pay in interest over the life of the loan (as with everything, there is a give and take).
Determining if student loan consolidation is right for you is a personal choice that is different for each borrower. If you decide that student loan consolidation is the right choice for your financial situation, here are the 2 most important tips when it comes to consolidating your student loans:
1. NEVER consolidate your private student loans and your federal student loan together. You must ALWAYS consolidate your private student loans into a private consolidation loan, and your federal student loans into a federal consolidation loan. Federal consolidation loans offer much better rates and terms the private consolidation loans can, therefor you do NOT want top consolidate your federal student loans into a private consolidation loan and forfeit those options.
2. Consolidate your student loans as soon as you can, even before your grace period is over. This can help you to lock into better rates for your consolidation loan.
Before making a decision to consolidate your student loans, do your research! Choose from some of our most popular student loan consolidation topics:
Student Loan Consolidation 101: Easy Tips for Beginners
3 Tips for Student Loan Consolidation
Consolidate Private Student Loans
Compare Student Loan Consolidation
TheStudentLoanShark:
Answering all of your student loan and college financial aid questions. Read all of my posts by clicking here or ask me your student loan and/or college financial aid questions.
Tags: consolidation, credit, federal student loans, grad school loans, Private student loans, student loan debt, student loans
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