And cons of consolidating debt updating progress bar when retrieving records from database
If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief, or consider switching to an income-driven repayment plan. Whom do I contact if I have questions about consolidation?You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. There’s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan.While this is a great idea on the surface, if you do not stay on schedule with your payments your house is in the line of fire.With secured debt, you always have to worry about what will happen if you cannot make your payment.Since you will only have one payment and one interest rate that is lower, your monthly payout is going to be much less. The potential for more debt if you are not careful.
Unfortunately, there are many who use this “leftover” money to get into further debt.
From here, the cycle starts over and you will find yourself in a bad spot once again.2. Even though your interest rate may be lower, it is possible that it will take you a longer period of time to pay back your debt.
In turn, the amount that you pay in interest may turn out to be greater.
The result is a single monthly payment instead of multiple payments. Refer to the complete list of federal student loans eligible for consolidation in the application.
Loan consolidation can also give you access to additional loan repayment plans and There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. Department of Education (ED) or ED’s consolidation loan servicers. Top A Direct Consolidation Loan has a fixed interest rate for the life of the loan.