Is consolidating school loans a good idea catholic dating sites online
Consolidating those loans into a single new one can simplify your payments, especially if your loans are with different loan servicers, the companies that oversee your payments.
It can also be a way to get into repayment plans you otherwise wouldn’t be eligible for.
Borrowers who graduated before 2010, when the government shifted to Direct Loans, for example, need to consolidate their loans to access the latest income-driven plan, Revised Pay As You Earn.
Parent PLUS borrowers most consolidate their loans into the federal Direct Loan program if they want to enroll in the only earnings-based plan available to them, income-contingent repayment.
Those advantages are: If you have determined that consolidating your student loans with your spouse’s loans is the best idea, it is best to ensure that the two of you are on the same page with everything.
Talk about how the payments will be made, what your goals are, and how consolidation fits into you meeting your financial goals.
Consumer advocates caution that there’s a serious downside to moving to a private lender, even though you might get a slightly lower interest rate.
NEWSLETTER: COLLEGE_PLANNERSign up for COLLEGE_PLANNER and more View Sample 1. One of the myths of consolidation is that it makes your debt less expensive by lowering your interest rate.
Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz.
Consolidation also opens up the door to extended repayment plans, in which your term can stretch up to 30 years depending on how much debt you have.
Consolidation doesn’t always work to your benefit, however.This means losing any benefits provided by the Direct Loan program, but the best case scenario offers a lower interest rate and significant savings during repayment.