| What does it mean to consolidate your student | | | | to get. You don't need to be employed or have |
| loans? | | | | collateral or a cosigner to consolidate your loans. You |
| To consolidate your student loans means to take all | | | | don't even need good credit! |
| of your various loans and give them to one company. | | | | The Problem With Consolidation: |
| One benefit of this is that, often, you can get a | | | | There are usually disadvantages to every decision. |
| lower monthly rate. | | | | Check out all the pros and cons of consolidation |
| Benefits: | | | | before you do it. Here are a couple disadvantages |
| Consolidating your student loans has other benefits. | | | | you may want to consider: |
| Listed below are a couple more of them: | | | | -Interest rates fall every now and then. If you have |
| -Only one payment: Consolidating simplifies your | | | | consolidated, you are stuck with one rate. |
| finances by allowing you to write only one check | | | | -Once you consolidate you cannot "unconsolidate". |
| instead of several checks. | | | | -The consolidated loan will have new terms and |
| -Spend less: Find a lender that will charge you a lower | | | | conditions that your other loans didn't. |
| monthly interest rate and let them consolidate your | | | | -If you choose to extend the life of the loan you will |
| loans. | | | | wind up spending more (in interest) than you would |
| -Helps build credit: At the time you consolidate, your | | | | have. |
| new lender will repay your previous loans and merge | | | | Since we have reviewed the benefits and |
| them to make 1 new one. Because your former loans | | | | disadvantages of consolidating your student loans, |
| were fully repaid, your history looks better which, | | | | you should find out if you are eligible for one. To be |
| consequently, improves your credit rating. | | | | eligible for federal student loan consolidation, you |
| -Lock in interest rate: When you consolidate your | | | | must meet a couple requirements. You have to have |
| interest rate is locked in. This protects you from | | | | at least ten thousand dollars. You must be graduated |
| future interest rate increases. | | | | as well. Finally, you must repair any defaulted federal |
| Consolidation loans are great because they are easy | | | | loans before you will be allowed to consolidate. |