What are the pros & cons of consolidating federal student loans?

Question

I heard there were advantages plus disadvantages of consolidating.

Answer 1

The pluses:
* One payment a month compared to how many student loans out at the time of graduation needing payments.
* Fixed interest rate.
* Different payment options.
* More money to spend on other things than student loans.

Minuses:
* If eligible for a loan forgiveness program, elgibility goes away with the consolidation. (nursing and education in rural or urban areas). Check before consolidating.
* Grace period ends once consolidation happens. Wait until the six months are almost up.

Answer 2

Pro...you get to lock the interest of loan. meaning, it will be fixed for the life of the loan
the payment period will be 30 years vice 10
combine all your loans into one payment
con..the payment period will be 30 vice 10...meaning, more money to pay on the loan

I would not bother with consolidating just yet, unless you have the option to reconsolidate a loan when interest rates drop. The interest rates on student loans are expected to decrease over a period of 10 years. I recommend getting on a strict budget in order to pay it off quickly. In addition, if the fed government decides to raised the interest rate, then you should consider consolidating your loans