Is it good consolidate your college loans?

Question

I recieved all my loans from one lender for 2 years. Do you think it is necessary or better to consolidate my loans?

Answer 1

YES! Avoid multiple payments and you may even get a better interest rate. Looks better on a credit report too, showing one credit source vs. several.

Answer 2

Usually when you consolidate it will allow you to lock in a lower interest rate. It's definitely not necessary, especially if you have used the same company - you may only have one bill anyway. I had several companies and my loans were sold several times, so it was very beneficial for me to consolidate. You'll get those notices forever- I consolidated 3 years ago and I still get the notices- you know the ones EVERY company sends you. If you are happy with your current company I would talk to them and see if consolidating would help your interest rate - if not, I wouldn't worry about it.

Usually by locking in your interest rate you are guaranteed that rate for the length of the loan - it would not be subject to the hikes issued every July 1.

Answer 3

YES! I used to work for College Loan Corp and know lots about originating loans and consolidating loans. I would suggest you contact your current lender to consolidate them - there are rules that state you can only consolidate w/ your current lender or the DOE if you only took out your loans w/ one lender.

Answer 4

Yes because it will lock you into a fixed interest rate. If you haven't consolidated you are most likely paying a variable rate which means your payments will go up if the interest rates continue to rise.

Consolidating means you will be locked in a at a lower rate and you will make the same payments over the life of the loan.

Answer 5

It might depend on your interest rate, which might be higher or lower than the consolidation rate, how much you're paying (or if you could pay more), how long it will take you to pay off your loans on your current payment schedule and other factors. Check out the Direct Loan Servicing Center website for more info and a toll-free number you can call.

Answer 6

Student loan consolitdation can be beneficial, but look at the pros of it before you decide. Some lenders will offer lower interest rates for doing it, and that is a big plus. Although, you should be carefull also. Some lenders at the same time will intice you to prolong the payment period for another 20 years.

Answer 7

yes it is better. the interest rates went up in July and they are going up again in April. if you do decide to consolidate then a set interest rate will apply to your loans from then forward. you can go back to school and put your loans on deferment again, while keeping this rate. this is what my loan company told me yesterday.

Answer 8

YES! I consolidated mine and then the Feds raised the interest rates 17 straight times. It's saving me thousands.

Answer 9

no, unless you have interest rates over 8% and you have good to great credit, i would not recommend you wrap student loan debt unless you are having a hard time paying your monthly expenses.

those student loans are unsecured. if you put them on your mortgage, they are now backed by your house.

credit card or other high interest debt is what you should consider consolidating. this is due to the higher interest rates on these types of loans. no so with most student loans.

i would be happy to speak with you further, contact me at [e-mail]

Answer 10

Many times consolidating looks like a Ch. 9 bankruptcy... It can be bad for credit...