If I'll end up paying triple what I borrowed. If I don't consolidate I have smaller payments and will only owe double what I borrowed.?
2007-10-20 11:56:02 · 5 answers · asked by Rachael B 1 in Education & Reference ➔ Financial Aid
I didn't consolidate right away. I could afford the payments on $50,000 in what amounts to a 10 year note. When the interest rates dropped and I had other uses for my money I did consolidate into a much longer term (25 years), much lower payment, and less interest. Eventually, if I don't increase my payment above the minimum, I will pay more interest.
It was a decision based on all those factors. Right now, if you can afford the payments, and interest rates won't reset until at least July 1, 2008, don't change.
2007-10-20 15:21:27 · answer #1 · answered by bob - chicagobob 2 · 0⤊ 0⤋
Consolidation actually gives you more freedom with your income to spend on other things. Instead of making several minimum monthly payments, you would be making one payment which could be lower. In addition, you would be locking in a rate in case interest rates went higher. Also, it would make it possible to pay more than the set payment amount if you wanted to decrease the loan faster. In some cases, if the consolidated loan is a high amount, you would be able to extend the payment period in order to have a comfortable monthly payment.
2007-10-20 21:13:37 · answer #2 · answered by dawncs 7 · 0⤊ 0⤋
however, there is a bad side if you consolidated your loans. The credit agency can run your credit, and they are going to be able that you can't pay back any money that you own without consolidation. Think over first
2007-10-21 02:23:43 · answer #3 · answered by danesaber 2 · 0⤊ 0⤋
Consolidation is not for everyone. You don't HAVE to do it! Only do it if it makes sense for you, which it seems like it doesn't.
2007-10-20 19:10:17 · answer #4 · answered by SMS 5 · 0⤊ 0⤋
It will cut your payments in half and lower your interest rate...
2007-10-20 19:34:17 · answer #5 · answered by Kute_N_Pretti 5 · 0⤊ 1⤋