| While higher studies can mean a commercially rich | | | | The first drawback is the fixed interest rate and the |
| career, the money it requires to study further is not | | | | loan repayment period. If you consolidate school |
| easy to come by for many. Ninety percent of | | | | loans, their combined prepayment period can almost |
| students pursuing higher studies depend on student | | | | double to like 20-30 year and the interest rate will be |
| loans. It is also a heavy financial burden to carry with | | | | fixed on that point. So if there is a drop in the |
| you and manage smartly until you can settle on a | | | | floating interest in the market, you will be not getting |
| career go pay it back. Most students end up juggling | | | | any advantage out of it. If you absolutely need to |
| multiple loans from multiple institutions with various | | | | consolidate school loans, do it during the "grace |
| interest rates and repayment schedules. It can | | | | period", right after you have graduated and before |
| become nuisance when you have huge study loads | | | | you have found a job, as the interest rate tend of |
| and exams to handle as well. Consolidating your loans | | | | to be minimal then. |
| into one single account can make life easier. | | | | As you can consolidate school loans with any lender, |
| The Loan Consolidation program allows students to | | | | you will probably save you some money by choosing |
| consolidate various educational loans under one single | | | | the right one. Try using comparison websites which |
| scheme and a fixed interest rate. You cannot | | | | tend to be neutral. Many of these lenders will have |
| consolidate school loans before you graduate. | | | | extend bits to entice you, like discount on interest |
| Students who are married cannot consolidate school | | | | rate if paid through direct debit or discount if paid on |
| loans. Parents can consolidate school loans as well. | | | | time etc. Considering you will be repaying for a long |
| However, before you decide to consolidate, you | | | | time, even small savings each month can amount to |
| should know the pros and cons of it and decide | | | | a lot in the long run. |
| whether consolidation will work for you or not. | | | | As we mentioned before, it is not necessary to |
| First of all, not all educational loans can be | | | | consolidate school loans if you are able to track and |
| consolidated. At the moment, under the Family | | | | repay them separately. The prepayment amount and |
| Education Loan Program (FFELP) and Federal Direct | | | | schedule will be definitely smaller in that case. While |
| Student Loan Program (FDLP), you can consolidate | | | | the numbers can be mind bending, a little calculation |
| Stafford Loans, PLUS Loans, and Federal Perkins | | | | cannot hurt. Sometimes consolidating loans can leave |
| loans. You can consolidate private loans as well. So if | | | | you with a higher amount to be paid monthly than |
| you are planning to take out a education loan you | | | | you can manage. Failing to pay the monthly minimum |
| can check before hand if it falls under either federal | | | | charge can end up getting you a bad credit report |
| or private scheme. Secondly, it may not be | | | | which you really don't want. |
| necessary to consolidate school loans if they aren't | | | | So, if you think to consolidate loans is the only way |
| too many. While it may work out functionally to | | | | to go for you, read the fine print and read it again to |
| consolidate school loans, it is not necessarily a | | | | make sure you are making the best all the benefits |
| financially beneficial move. | | | | available to you from this program. |