Pros and cons of consolidating federal student loans

Sometimes, you can fix a lower interest rate to that single payment than the average rate that you were paying on your other multiple loans, which is especially beneficial if you are able to turn variable rate loans into a single, fixed, low-interest rate loan.It is also possible to move into an alternate repayment plan to accommodate your changing life circumstances.And who wouldn’t want to be done paying student loans sooner? When you refinance and consolidate student loans with Earnest, you can skip a payment when finances are tight, make an extra payment if you have a windfall, and set your own payment due date.

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Your original loans will be paid off, and you’ll be moving forward with the terms of your new loan.Private education loans are not eligible for consolidation.The most obvious benefit of a consolidation loan is that you can replace your multiple loan payments with a single payment.If you’re perfectly happy with your current loan repayment terms and don’t think you can save more money by taking this step, you may not see a need to refinance or consolidate.Learn more about Earnest calculations in disclaimers available at Earnest.

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