Is Student Loan Debt Consolidation a Good Idea?
- Author Jennifer Quilter
- Published September 22, 2010
- Word count 351
Student loan debt consolidation can be a very good idea, in fact there are many ways this can work out to the great advantage of the borrower. There is a key difference in how you handle doing this, however, based on whether you have federal or private financing, or both.
If you have both of these types of financing you'll need to handle them each separately. This is because you cannot cover your private financing with federal money, and the federal money has such good options that you wouldn't want to give it up in favor of private. This is further explained below under each type of option.
For federal student loan debt consolidation you have a lot of options. These plans have very low interest rates, often around three percent, so this is definitely a preferable option. when you decide to consolidate you're basically just going to make it so that you have one monthly payment to worry about and all of your debt from school is easy to take care of. You can work with them to choose a payment plan and they're generally really flexible about how much you have to pay each month and other options.
For private student loan debt consolidation is a little bit different. You have a much higher interest rate. You certainly can pay off your federal financing with private money, but you wouldn't want to because the interest rate is so much higher (the government won't let you pay off private with federal). There are a lot of advantages to consolidating your private financing. You probably had little to no credit before college, and hopefully over the years you had a job, a credit card, and built up a bit of credit so you can possibly find a better interest rate. With your new loan you can look for a payment plan that will work for you, and will only have one monthly payment to worry about.
Consolidating your loans will make keeping track of these payments as easy as possible and let you set up your repayment on your own terms.
Learn more about your options for government assisted consolidation loans and finding the best deals for your situation at Unsecured Debt Consolidation Loans
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- BNPL vs Traditional Lending: Which Is the Better Option for Today’s Consumers?
- Personalized Loans 5 Things you Should Consider Before Applying
- Best Credit Card for Cash Back on Gas: Fuel Your Savings
- Mwananchi Credit Highlights The importance of Teaching Financial Literacy In Schools
- Porchlio's Rent Affordability Calculator: Your Key to Smart Renting
- What is SMB Funding?
- Cash USA | Quick & Easy Loans
- How Can a Private Loan Help Your Cash Flow Situation
- Business Line of Credit: A Lifeline of Your Financial Needs!
- Unsecured Small Business Loans in Australia
- Working Capital Loans: Everything you Need to Know
- Small Business Cash Advance Loans - Fast and Easy
- Things Not to Do When Building Business Credit
- Why Small Business Loans Do not Get Approved
- How to File Great West Life Benefit insurance Claim
- My encounter with the heartless corporate America @ChaseBank
- Are low doc home loans still available in Australia?
- Think Due Diligence Before Acknowledging That Loan Offer
- Tie Up Your Financial Loose Ends! The Importance of Managing High-Interest Loans
- Understanding cash flow vs. asset-based business lending
- Debt Consolidation Loan or Debt Counselling in South Africa
- Credit cards with bad credit wired to a prepaid debit card
- Insurance Financial Producers Articles - A Superstar Success Story Cannot Teach Me Anything
- Three Quick Tips From the Canada Revenue Agency on Tax Filing
- How Crypto Loans Work
- 4 Reasons why it is Beneficial to make a Down Payment for your Car
- Is the Process of Buying a Car Worth your Time?
- How to Consolidate Credit Card Debt During Covid-19
- Conglomerate Merger: Pros & Cons
- Signs That You Are Doing Budgeting Wrong