Loan amount. Term length. Pro: You could get a lower monthly payment. Pro: You can pick your federal loan servicer. Cons of student loan consolidation. Con: You might not save money.
Con: A longer repayment term means you pay more interest over time. Con: Consolidating privately means you give up federal loan benefits. What to consider before consolidating.
On a similar note Dive even deeper in Student Loans. Explore Student Loans. Spot your saving opportunities. See your spending breakdown to show your top spending trends and where you can cut back. By doing this, you remove those high-interest loans from the equation, effectively lowering your weighted average.
Only you can decide whether or not consolidating your student loans will make sense for your unique financial situation and goals. While it can bring a lot of good in making your student loans a little bit easier to manage, it can also bring some negatives which need to be considered.
In addition to tracking your progess, you should consider signing up for autopay. And it might even decrease your student loan interest rate by 0. That might not seem like a lot, but depending on exactly how much you owe it could easily save you hundreds or thousands of dollars over the life of your loan. Tim Stobierski is the founding editor of Student Debt Warriors.
A freelance writer and editor with a passion for teaching people about all things personal finance, his goal is to help parents and students tackle their student loan problems so that they can live happier, healthier lives.
Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Skip to content. What is student loan consolidation? What kinds of student loans can be consolidated? Student Loan Consolidation vs. Refinancing Though student loan consolidation and student loan refinancing are often discussed interchangeably, they are very different things.
Consolidation can make repaying your student loans less confusing. Consolidation might increase your total interest payments. Consolidation can lower your monthly payment. Consolidation may add to your principal. Consolidation may give you access to important benefits.
Consolidation might cause you to lose certain benefits. Consolidation can convert variable-rate loans into fixed-rate loans. Consolidation will reset the clock on student loan forgiveness. Consolidation gives you more options for consolidation and deferment. Consolidation won't lower the interest rate on your student loans.
Consolidation can help you avoid default. You can't consolidate your private student loans. Federal student loans can not be consolidated with loans from private lenders. The site answers a lot of frequently asked questions and enables you to go through the entire consolidation process online.
Private student loans can be consolidated into a single loan through certain education lenders. According to finaid. Keep in mind that your interest rates for private loans will likely be higher than the interest rate on federal loans, even after consolidating.
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