Best lenders for consolidating student loans blake lewis dating
That’s why we decided to use this blog post to explain exactly what student loan consolidation is and whether or not it’s the right thing for you. How does student loan consolidation differ from the other types of debt consolidation?
By definition, consolidation means combining many loans into one single loan.
That’s why evaluating the pros and cons of consolidating student loans becomes a high priority for recent graduates. Most student loans that are approved are often treated as individual loans.
These key points show the advantages and disadvantages that come from deciding to make one payment instead of multiple payments every month. Since loans may cover just a semester and a student may receive two loans to cover costs, there may be 15 loans that require payment upon graduation. The interest rates on student loans aren’t governed by the free market economy. Congress in the US has the authority to raise student loan interest rates whenever they want to do so. Although not all consolidation loans allow it, there are incentives in place for students to receive interest rate discounts.
If you’re a college student or recent graduate, then you’ve probably thought more about student loans and how to pay them off than you’d like.
With so much information out there, it may be difficult to figure out your best course of action.
Most students today are coming out of advanced schooling with a degree and a load of student loan debt. It isn’t uncommon for payments to be as high as 0 per month.
Even with income-based repayment schedules, it can be nearly impossible to afford every monthly payment from every student loan that exists.
Because there are lower minimums with a consolidated student loan, it becomes possible to pay them off much more quickly by paying down the principal amount when there is extra money floating around. If you can lock in an interest rate of 3% on your student loans, but receive a 10% return on the investments you’re making, then what you have is called a “good debt.” It means your returns outpace the debt interest that you must pay to stay current.
Direct consolidation loans are now the only type of federal student consolidation loan.
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.