Student loan consolidation: What is it and do you need it?
Student loan repayment can be a tricky thing. Loan consolidation can help you out but how do you know if you need it?
One thing to consider is if your total student loan debt is larger than $30,000 you may need the help of student loan consolidation to get on a payment plan that will most benefit you. Another reason to consider student loan consolidation is if you have borrowed multiple loans from different time frames at separate schools.
What student loan consolidation does is it basically combines your multiple student loans borrowed either at one school or multiple schools over time and pays them off with one loan. You then make payments on the one consolidated loan rather than paying your lender and they allocate your payment to your multiple loans.
Student loan consolidation can also help you out if you have gone into default on your federal student loans. You will be required to enter into an income-based repayment plan after consolidation but it will get you quickly out of default without having to go through loan rehabilitation or repaying the loans in full. It is important to note that your late fees and payments, however, will still show on your credit report even in consolidation.
To find out which company is the best for loan consolidation can be tricky in it of itself as the loan companies are literally trying to sell you a loan. Fortunately, with resources like U.S. News & World Report, you can navigate the waters of loan consolidation much more easily.
They’ve broken down The Best Student Loan Consolidation Lenders of 2018 to help you find the loan product that best works for you and your situation. Whether you need to consolidate federal or private loans, they have answers.
You can also use the Federal Student Aid website as a resource for all things student loans.
If you have any additional questions, please contact Kim Myers at kmyers@dec.edu or 724-653-2197.
