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But that hasn't been the case for the past decade, since the government stopped issuing student loans with variable rates.If you consolidate your loans now, your new rate will be based on a weighted average of all your loans' interest rates.As you weigh the pros and cons, keep in mind that timing is critical.With just a few exceptions, you get only one chance to consolidate with the government loan programs.In cases like this, consolidating your student loans could help you manage your loans more efficiently. Here’s what to keep in mind before you dive into student loan consolidation.
You might have a mix of both federal and private loans and have several different loan servicers.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
You can consolidate all, just some, or even just one of your student loans.
Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
One of the myths of consolidation is that it makes your debt less expensive by lowering your interest rate.