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Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » I have a bunch of student loans. Is doing a student loan consolidation a good idea. I keep getting letters.?

I have a bunch of student loans. Is doing a student loan consolidation a good idea. I keep getting letters.?


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6 Responses to "I have a bunch of student loans. Is doing a student loan consolidation a good idea. I keep getting letters.?"

  1. realjustice says:
    Yes! You get a low rate, and one payment.
  2. Bob G says:
    Subsidized or unsubsidized loans?

    If your student loans have a high interest rate, then a loan consolidation could be a good idea if the new loan is at a lower interest rate.

    Usually, the opposite is true. The consolidated loan is an unsubsidized loan with a higher rate than the loans you already have.

    You need to read the details of your current loans carefully and the details of the new loan offer even more carefully. There might be a deal in there, but most of the offers will cost you money.

    The consolidated loan could also be a good idea if current loan payments are strangling your finances. Even at a higher overall cost there could be a benefit. You’re paying for that benefit, though, and it’s usually better to pay off loans as quickly as possible, even if you’re sacrificing a few luxuries to do so.

  3. Shaun T says:
    A Federal Consolidation loan is a repayment option for student loan borrowers. It is designed to make education loan repayment easier by combining existing eligible federal education loans into one new loan with a fixed interest rate and a lower monthly payment. Consolidation is a bit of a misnomer because a single loan can be “consolidated” to take advantage of better loan terms.

    What are the benefits and advantages to consolidating?
    Lower Monthly Payments: Most federal education loans have a maximum repayment period of ten years. A Consolidation loan allows you to extend the term up to 30 years, which may lower monthly payments by as much as 52%.
    Interest Rate Cap Reduction: The maximum interest rate on a consolidation loan is 8.25%. This will help PLUS loan borrowers repaying at a higher rate.
    One Convenient Payment: You only need to make one payment a month versus multiple payments with different due dates to different lenders.
    One Fixed Interest Rate: A Consolidation loan is a fixed rate that will never increase.
    No Penalty For Early Repayment: You may prepay your Consolidation loan at any time without penalty.
    Four Repayment Plans: ScholarPoint offers a Graduated Payment Plan, a Level Payment Plan, an Income Sensitive Payment Plan, and an Extended Payment Plan depending on your needs.
    Simple Loan Application Process: Applying for a Consolidation loan is hassle-free. There are no credit checks, application, origination or processing fees.
    You have different options with Sallie Mae, Educational Direct or try some of your local Financial Institutions!

  4. Student Loans says:
    The reason you have been getting so many letters lately is right now is the busiest time of year for Student Loan Consolidation Companies. As you may know July 1st is when the interest rates change every year so now is the big push before the change.

    Pertaining to the question if consolidating is a good idea or not, that really depends on your own personal situation. Are all of your Student Loans, Federal Student Loans or do you also have Private Student Loans included?

    The reason I ask is because you are unable to consolidate your Federal Student Loans with your Private Student Loans under the FFELP Consolidation Loan Program. The FFELP Consolidation Loan Program was designed by the Federal Government to help students and parents with their repayment of their Federal Student Loans.

    There are a lot of advantages to the FFELP Consolidation Loan Program which could assist you in the decision of whether consolidating is right for you. Apart from fixing your interest rate on your variable rate student loans and lowering your monthly payments, you also have your 3 years of Deferment and Forbearance reset back to zero, giving you a fresh 3 years of both. If you would like more information on all the advantages of the FFELP Consolidation Loan Program, please visit the source below. I hope this helps you make an educated decision.

  5. JRM says:
    If your loans are with different lenders/servicers then in most cases consolidating your loans is a good idea. However, if all of your loans are with one lender/servicer you should check to see if consolidation would be to your advantage. Many lenders offer repayment terms where your interest rate might be dropped anywhere from .25% to 1% after you make consecutive on time payments (like 48 months). You usually lose these benefits if you consolidate. So, check out your options carefully before jumping into consolidation.
  6. Jimmy John says:
    If your rates are high, it’s a great idea.

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