Consolidating school loan debt

Be wary of consolidating if you’ve already made progress toward loan forgiveness under the 10-year period for public sector employees or the 20-year period under income-driven plans.

It can cut the cost of the loan if the borrower qualifies for a lower interest rate.Student Loan Repay Options There are several options that are available to you when you cannot make the payments on your student loans.These options include: Student Loan Deferments Deferments allow you to stop making payments for a certain period of time if you can show that you qualify.So, for a simplified example, if you have two loans, one for ,000 at 4% interest and one for ,000 at 6%, your consolidated loan will have a ,000 balance and a 4.7% interest rate.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.

Search for consolidating school loan debt:

consolidating school loan debt-28consolidating school loan debt-86

Leave a Reply

Your email address will not be published. Required fields are marked *

One thought on “consolidating school loan debt”