Pro and cons of consolidating a student loan

Many students graduate with more than one student loan, and some graduate with as many as a dozen or more.

If you currently have multiple student loans, you could benefit from a consolidation loan on your student debt.

WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.

You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.

Your grace period on some loans could end prematurely, or you may end up consolidating at the wrong time – too early or too late.

On average, 2015 graduates left their campus with more than ,000 in debt that they are responsible for paying back.

A lot of students finish college with multiple student loans.

It’s the worst possible way to start a new chapter in your life. By consolidating your student loans, you will be able to extend your repayment terms, pay a lower average interest rate and reduce your overall monthly payments.

And it’s even better if you are able to turn variable rate loans into a fixed, low-interest rate loan.

Unfortunately, by consolidating your student loans you will lose any grace period that you currently enjoy.

852

Leave a Reply