Best options for consolidating student loans
However, it’s important to realize that there are some hardship options (deferment and forbearance) that aren’t likely to be offered by a private lender.These allow you to postpone payments if you fall on hard times financially, so if you don’t have a rock-solid source of income, you may want to think twice before losing this option.In addition, if you have any accumulated unpaid interest on the loans you’re consolidating, it will be added to the principal balance.So, your future interest will be calculated on a larger principal balance than before.So, if you’ve already made several years’ worth of payments under the plan, you’d effectively be starting the clock over.Private student loan consolidationhas become much more prevalent over the past few years.To reiterate, there are certainly some advantages to consolidating or refinancing your student loans.
Many borrowers are attracted to consolidating because it often translates into a lower monthly payment.
When you have several individual student loans, you have the ability to pay down your highest-interest loans faster.
As a personal example, I have separate student loans for every semester I was in school.
Federal student loans offer the best rates and terms for students, but if you've exhausted all your federal options, there are several lenders worth considering.
After searching through student loan rates, repayment options, assistance programs and discounts from the top private student lenders, our team created a list of the most ideal options for various types of borrowers.
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