Consolidating personal school loans
There are two primary types of educational loans — private and federal.While both may be eligible for consolidation, it is important to think of these two types independent of each other when considering consolidation.
Better yet, if your student loans are consolidated, reducing the number of active accounts on your credit report, it can heighten your score as well.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.Even if your student loans don’t strain your wallet, consolidating them into one payment could free up additional cash, or help to structure payback of your loans on your terms.You may want a payment plan contingent on your income, or you may want to stretch your loan payback over a longer period of time for the lowest fixed payment.Unsecured student loan debt is looked upon more favorably by lenders when it comes to evaluating your credit worthiness.
Student loan debt is often considered good debt because it represents an investment in your future.
student loan is subject to completion of a loan application/consumer credit agreement, verification of application information, credit qualification, and a benefit to borrower determination.
Community Q&A If you've watched TV or opened your mail lately, you know that there are plenty of companies eager to help you consolidate your loans to "cut your payments in half," "lower your interest rates," and "help you get out of debt fast." Indeed, consolidating your high-interest loans and credit card debt into a single loan with a lower interest rate and more manageable payments makes perfect sense. Many people who consolidate loans end up paying more than they would have otherwise.
In the case of home-equity loans, in fact, an alarming number of borrowers end up losing their homes.
Many so-called "consolidation" programs can prove not to consolidate debt at all.
Take advantage of this opportunity, and make your payments on time.