Consolidate Federal and Student Loans

   
Consolidating your student loans generally means one lender will group together multiple loans which you have taken out. Instead of managing numerous simultaneous payments and interest rates, the consolidated loan will compile them into a single loan at a new, fixed rate. Just remember consolidation is not forgiveness of all or a part of loan. You still owe the loan amount of money. Just that after consolidation, you owe it to one lender instead of several as before. Your terms and conditions most likely be different as well. So, question is why consolidate?  Well, here are some of the benefits of loan consolidation :
  • You will only be responsible for a single account with a single financial institution.
  • The interest rate for your consolidated loan may not change over time depending on the terms and conditions of the new consolidated loan.
  • If you one of your objectives to consolidate the loans is to lower your monthly payments, consolidation potentially do it by extending the term of your loan.
    - This may also mean paying more interest in total over the lifetime of your loan.

Despite the possible benefits of consolidating your student loans, there are many reasons why consolidating your student loans may not be your best possible option. One of the major reason can be that there may be substantial cost/fees involved in consolidations of loans making it unprofitable. So, one has to do their cost benefit analysis before undertaking this effort.  Talk to your financial advisor before you start to consolidate your loans or use resources below to educate yourself before deciding to consolidate.

   
Consolidate College loans

Consolidate Student and Federal Loans and build credit

 
 
Things to consider in your decision to consolidate
 credit   student loans