I have two student loans that I am having a problem paying on. I keep getting letters in the mail to consolidate. I'm trying to figure out if it is a good idea?
2007-05-31 04:17:45 · 5 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
Are your student loans, Federal Student Loans or are they Private Student Loans? The reason I ask is because you can in fact consolidate your Federal Student Loans, but there are very few programs out there at this time that offer Private Student Loan Consolidation.
The FFELP Consolidation Loan Program rarely harms people. This free federal program was developed in order to ease the financial burden on students once they graduate school and go into repayment on their Federal Student Loans. Some of the advantages of the FFELP Consolidation Loan Program are: having one bill and one lender, locking in the lowest possible interest rate available to you, lowering your monthly payments, and resetting your Deferment and Forbearance time.
If the Student Loans that you have are Federal Stafford loans and they were disbursed to you before July 1st, 2006, than the interest rate on those loans will be Variable, which means they are subject to an interest rate change every July 1st, which is determined by the Federal Government. For more information on current Federal Student Loan interest rates, as well as more detailed information on the FFELP Consolidation Loan Program please visit the source below.
2007-05-31 05:55:01 · answer #1 · answered by Student Loans 4 · 0⤊ 0⤋
Consolidation means combining both loans into one larger loan. The amount owed will not change, but there may be an interest advantage. You may be able to get a combined loan, for instnace at a lower interest rate. Consolidation is just another form of refinancing a loan. Be sure to check on fees and rates when considering a consolidation.
2007-05-31 04:22:38 · answer #2 · answered by fangtaiyang 7 · 0⤊ 0⤋
Honestly, it is impossible to answer that question. We do not know how much each loan is, or the interest rate for each loan. I would say this, better to consolidate now, and have to only deal with one loan.
2016-05-17 21:04:17 · answer #3 · answered by ? 3 · 0⤊ 0⤋
there are A LOT of scam programs out there.
Here is the best bet: if you own a HOUSE, take out a loan against that and pay off all of your student loans. You can write off the interest from the house...so it's like you save money already...and you only have to worry about one payment, not 3!
Good Luck!
2007-05-31 05:00:39 · answer #4 · answered by Mel 2 · 0⤊ 0⤋
Yes, this is a very good idea if you can do this.
You don't have to worry about two different rates. Sometimes
the rates are lower and you only have to worry about one
payment.
2007-05-31 04:23:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋