Is Consolidating Your Student Loan a​ Good Idea?
Fortunately there is​ a​ thing called student loan consolidation.
If your loans are consolidated,​ you​ need not pay multiple loans every month,​ you​ only have a​ single loan to​ pay and this makes it​ less confusing and burdensome.
On the​ other hand,​ fresh graduates that are in​ debt could not focus or​ advance in​ their careers because they have this huge debt to​ pay.
Often times if​ a​ student has multiple loans to​ pay,​ it​ means paying higher as​ the​ student is​ paying for interest for multiple loans.
Consolidation offers students a​ fixed monthly interest that is​ usually lower than the​ interest rates of​ their previous loans.
You may get lower interest rates because interest rates these days are decreasing.
More convenient payment scheme Because all the​ previous loans are combined into one,​ payment is​ easier and more convenient when student loans are consolidated.
But no matter what the​ interest rate,​ bottom-line is​ your still going to​ save money.
This is​ a​ good thing so students wont feel pressured to​ pay their consolidated loans because it​ lowers the​ monthly payment.
Some loans that can be consolidated are direct subsidized and unsubsidized loans,​ federal insured student loans,​ federal Perkins loans,​ national defense student loans,​ etc.
You may want to​ consider these disadvantages before deciding to​ consolidate your loans.
Increases overall total amount paid Because consolidating all your loans extends repayment period,​ it​ will lower your monthly payments but this will result in​ an​ increased overall total amount paid.
If you​ consolidate all your loans you​ may lose several incentives that are offered to​ you​ by your lenders.
Lose benefits for Perkins loans Consolidating Perkins loans means cancellation of​ your benefits and losing interest subsidy.
The advantages obviously surpass the​ disadvantages but it​ is​ still up to​ you​ if​ you​ want to​ consolidate your loans.
Before indulging in​ the​ consolidation scene,​ you​ need to​ do research on​ that consolidation companies offer the​ best deals and will really help you​ lower your payments.
Some sites even offer quotes and this makes it​ easier for you​ to​ compare and choose among different companies.