Disadvantages of consolidating student loans
Many PT students and recent grads are confused on the topics of refinancing and consolidating student loans.While these two terms have two distinct definitions, they’re often used together—which is why they can be so confusing.
However, loan consolidation is not always the answer.Direct consolidation loans are essentially large loans from the Department of Education that allow students to pay off multiple lenders in one fell swoop.The consolidation loan amount is then repaid directly to the Department of Education via a single monthly payment designed to fit into the individual student’s current budget.Making the Decision to Consolidate Your Student Loans Consolidating Your Federal Student Loans Consolidating Your Private Loans Community Q&A Most students need to borrow money to pay for college, and many struggle to make their payments after graduation.If you are juggling more than one payment on your loans (whether they are federal, private, or both), or if your federal loans are currently in default status, consolidation may help you manage your debt and protect your credit.
Search for disadvantages of consolidating student loans:
You may pay more in the long run, but for now, you’ll be able to make just one monthly payment – and it may be considerably lower than your current loan payments.