Start Pros and cons of consolidating student debt

Pros and cons of consolidating student debt

When you’re having problems with debt, the right solution can help you rein in your payments and save your credit from the damage of bankruptcy.

This allows borrowers to combine several federal student loans into a single loan at a fixed interest rate.

These loan consolidation programs may fall under the Federal Direct Student Loan Program (FDLP) or the Federal Family Education Loan Program (FFELP).

Debt consolidation is where you take a bunch of varied debts, varied interest rates, and varied minimum payments and pay them all off with one giant chunk of money.

You borrowed the giant chunk of money, but using it allows you to have one bill, one creditor, and one interest rate.

If you have questions or need help choosing the right solution for your situation, just call us at In most cases if debt consolidation is the right option in your financial situation, then there shouldn’t be too many downsides to using the process in general.

Any disadvantages are usually specific to the particular method you use for consolidating – more on that below.

Student debt consolidation involves combining private or certain eligible Federal loans into one manageable payment.

In general, debt consolidation involves taking out a single loan to pay for two or more loans.

from 5 years to 10 years), which means you could pay for a longer time period.

: Identical to the simple debt consolidation loan except that these are borrowed from peer-to-peer lenders rather than from banks or credit unions. Well, it is a financial institution that brings investors from all over together with borrowers and connects them (while taking a small commission for each loan).

here’s a lot of confusion about what exactly debt consolidation is.