Consolidating previously consolidated student loans
Another possible advantage of consolidation includes being able to take advantage of an alternate payment program that can be adjusted to accommodate your financial situation.
Furthermore, borrower benefits such as discounted rates for automatic payments might be offered on your consolidation loan.
Many former college students are uninformed about how to or are unable to pay back their debt.
Luckily, there are a few ways that can lighten the burden of your debt and help you pay it off.
This is a better decision for borrowers who are generating more income than when they started college.
When you sell your loans to the private lenders, you also give up the federal programs that go along with them.
The Federal Direct Consolidation Loan program will allow you to have only one bill each month.
You will also be able to apply for Income-Driven Repayment, which you cannot get from most private lenders.
Making a decision on consolidating student loans should involve carefully examining your situation and the various consolidation loans that are available to you.
This makes your payments smaller and easier to manage.
Student loan refinancing is a similar concept to student loan consolidation except that it is done through a private lender.
You may have to meet certain eligibility requirements before you are able to consolidate your loans.
Typically, you will have to be out of school before consolidating, or at least you must only be enrolled part time if you are still taking classes.