In many cases you’ll lose some of the flexibility you currently enjoy or end up paying more over your student loan’s term.Image via Flickr by College Degrees360 Some of the borrower’s benefits you might currently enjoy include a discounted interest rate, a pay-on-time discount, and special rebates.While you can’t outrun your student loan debt, you do have options for getting it under control. With a loan consolidation, a lender pays off your various student loans and gives you a new, single loan, often at a lower interest rate. Private loans can only be consolidated through a credit union or bank.
According to the Institute for College Access & Success, 69 percent of seniors who graduated from public and nonprofit colleges in 2014 had student loan debt — to the tune of an average of ,950.
Often loan service providers encourage students to extend their repayment terms.
Extending your repayment terms might sound great at first because you’ll have lower repayments since you’ve got more time to repay your loan.
Without them, you could end up paying more in the long run or struggle to make your repayments.
Losing an interest rate discount isn’t the only time your interest repayments could increase after consolidating your student loan.
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Learn more about Direct Consolidation Loans on the Federal Student Aid site Apply now at Student Private student loans are NOT eligible for consolidation into a Direct Consolidation Loan.