Consolidating private college loans
If your loan payments are in default, you will be required to make at least 3 consecutive monthly payments before you can apply for the Federal student loan debt consolidation loan.WARNING: DON'T MAKE THIS STUDENT LOAN CONSOLIDATION MISTAKEThe first big problem that can happen with student loan consolidation is that, since you can consolidate just about every type of Federal student loan, you can accidentally put a loan type in your new consolidate loan that prevents you from having certain repayment plans. You can't transfer it to them, and you can't allow them to consolidate the PLUS loan into their loan.It's not unheard of for graduates to end up with 5-6 different student loans, sometimes at different loan companies.If you take out a different loan each year of college, maybe a couple summer sessions - you could have a variety of loans at different places.Getting rid of student debt is high on the radars of everyone who has it.
)It seems like a roundabout way to go about paying your debt: I mean, you are taking out a new loan to pay off another loan. The reality is that, if you are currently having trouble keeping up with payments or digging yourself out of debt quicker, a debt consolidation loan may be just the solution for you. Student loan consolidation is the process of combining your Federal student loans into one single loan.Because remember, student loan consolidation is about convenience in paying multiple loans – nothing else.Your new consolidation loan gives you choices in repayment plans – you could switch to an income-based repayment plan, or the extended plan.The most common problem involves PLUS Loans Made To Parents. However, if you're a parent with other student loans in your name, and now you have this PLUS loan, you could potentially add it to your other loans via consolidation.If you're a parent, and you borrow with a PLUS loan to pay for your children's college, you should never consolidate these loans. This is typically a bad idea because PLUS loans don't qualify for income-based repayment programs like IBR, PAYE, or Re PAYE.
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As such, if you consolidate, you're at a loss of these programs.