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Here’s where you can learn about topics including consolidation of private vs.federal (or national) student loans, forgiveness programs and how they differ from consolidation, how to apply for a consolidation loan and many others.Carson received her Bachelor of Arts in English from Arizona State University.In recent years, the issue of student loan debt has grown in scope from obscure to national.If you’ve already been paying off your loans for a while, you can consolidate at any time.If you have only a couple more years or a few thousand more dollars to go till you pay off your student loans, consolidation is probably more hassle than it’s worth.If you need more cash in your pocket right now, consolidation can help by extending the life of your loan and thus trimming your monthly payments — although the length of your repayment terms will depend on the amount of debt you have, and you may not be able to extend at all.But if interest rates are low you can lock in long-term savings, since less of your money will go to interest.
The downside is that your grace period will end once your consolidation loan goes through.Despite the appeal — and its popularity — student loan consolidation isn’t for everyone.Here are some frequently asked questions and answers that may help determine if it’s the right move for you.This can greatly complicate your ability to obtain credit at a reasonable interest rate, and a bad credit score can increase your car insurance rates no matter how well you drive and how few accidents you have had in your lifetime.
This is why many people choose to consolidate their debt rather than file for bankruptcy.
Debt consolidation loans are obviously designed to consolidate all of your debt under one loan so you will only have to keep track of one payment each month.