These days, an increasing number of young entrepreneurs are dealing with the same question: What do I do about my student loans? Fortunately, federal loan consolidation is often a great option for student loan borrowers.
It provides the convenience of having only one monthly payment and communicating with only one lender. It may even give you a lower total monthly payment, potential eligibility for additional payment plans, and possible renewed deferment benefits.
However, loan consolidation is permanent — meaning, they cannot be pulled back out and paid separately. Therefore, it’s not always the best solution for everyone.
It’s important to consider whether you may pay more in total interest if you extend your repayment term, or if you’ll lose special benefits attached to your original loans. Also, you may lose special interest benefits or cancellation benefits if certain loans are consolidated. Lastly, keep in mind that private student loans cannot be consolidated.
If you have more questions about student loans, or any form of loan, don’t hesitate to join AFEUSA and contact our expert partner, Take Charge America. Since 1987, Take Charge America has helped more than 1.6 million people manage personal debts and reach their financial goals. As a nonprofit organization, their highly trained financial counselors are committed to helping you work through financial challenges, providing tools and educational resources to empower you on the path to financial independence.
Join AFEUSA and start building a better, stronger future today!
Article by Charles Jackson, President of AFEUSA