Pros cons consolidating your debt

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These circumstances are: Borrowers cannot consolidate private student loans with the federal consolidation loan programs.

However, if you have private loans, you may want to think about consolidating these loans into a new private consolidation loan.

WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.

You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.

You may consolidate with Direct Loans during grace periods, once you have entered repayment, or during periods of deferment or forbearance.

You can consolidate all, just some, or even just one of your student loans.

Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.

Using Studentloans.gov: You will need to sign in using your personal identifiers and PIN. You are required to select from the choices listed by the Department of Education). (“Joint and several liability” means that both borrowers are fully liable for the full amount of the debt). Not surprisingly, this caused a lot of problems for borrowers and Congress eliminated the program as of July 1, 2006.

The electronic application consists of five steps: 1. If may make this choice on-line or if you are sending in a paper application, you should send directly to the servicer you choose. The Department provides some general information about servicer performance in the on-line data center and quarterly performance reports. There are still many borrowers struggling with joint consolidation loans.

Direct consolidation loans are now the only type of federal student consolidation loan.

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