Pros and cons to consolidating student loans

This makes life easier because you only have to make one payment to one servicer for your federal student loans.And while that's a great help to many, consolidation can come with many cons to balance out these pros. The length will depend on how much you consolidate (see below).If you've decided consolidation is right for you, you can start the process for your federal student loans at Student This site links up with the National Student Loan Data System (NSLDS) to pull all of your student loans automatically into your Consolidation loan.

However, you cannot refinance federal student loans at a new interest rate and keep them in the federal student loan program.

Remember, your Consolidation loan is a new loan, not an extension of your older loans.

So, the longer you wait to consolidate, the longer you will pay off your student loans.

When you consolidate your private and federal loans through a credit union or bank, you could be offered a rate that is lower than what you’re paying right now.

But, consolidating student loans is not right for everyone.

Search for pros and cons to consolidating student loans:

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If your loans have variable interest rates, consolidation will lock your loan into a single rate for the rest of your repayment term. Unfortunately, if the rates go down, your loan will be more expensive than it would have been otherwise.

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