Is consolodating my student loan smart
Additionally, certain employers may provide supplemental payments or subsidies on federal student loans as a benefit of employment and these payments may be ineligible if the loan is refinanced into a private student loan consolidation.
We strongly advise that you seek professional advice and examine your benefits and options before refinancing your federal loans.
Benefits that may be lost include favorable repayment options, low and fixed interest rates, extended loan terms, and loan forgiveness.If you take a loan with a three-year term, you know it will be paid off in three years — assuming you make your payments on time and manage your spending.Conversely, making minimum payments on credit cards could mean months or years before they’re paid off, all while accruing more interest than the initial principal.To do this, many or all of the products featured here are from our partners. It can reduce your total debt and reorganize it so you pay it off faster.If you’re dealing with a manageable amount of debt and just want to reorganize multiple bills with different interest rates, payments and due dates, debt consolidation is a sound approach you can tackle on your own.