Pros and cons to consolidating student loans who has robert buckley dating
Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz.But that hasn’t been the case for the past decade, since the government stopped issuing student loans with variable rates.By combining your interest rates, you also lose the ability to employ a favorite tactic of financial planners for paying down debt: targeting the most expensive debt, the loan with the highest interest rate, first.
Consider federal consolidation if you: If you’re considering either federal or private student loan consolidation in order to get a drastically lower loan bill, look further into income-driven repayment instead.
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Like the federal government, private companies offer the option to consolidate multiple student loans into one.
” Gameplan your solution around answering those questions to help find the best option.
College students can take out new loans each year they’re in school, so by the time graduation comes, it’s common to have half a dozen, or more, individual loans.