Pros and cons of consolidating school loans
Consolidation won't lower your interest rate, but you can lengthen the term of your loan, thereby lowering your monthly payments.
You pay the interest on the loan without help from the Department of Education.This article contains references to products from our partners.We may receive compensation if you apply or shop through links in our content. It combines your multiple federal loans into one, so that you have fewer accounts to manage.You help support Credit Donkey by reading our website and using our links. The Department of Education pays off your current loans and starts one new bigger loan.Why You Should Consolidate Your Student Loans: Do you have federal student loans with different servicers and several monthly payments? Consolidation refers to combining federal student loans, while refinancing refers to getting a new loan from a private lender with a new rate and term. You pay one monthly payment versus many payments of varying dates and amounts.
You can do this before applying for the consolidation loan.