Is consolidating student loans a good idea

Posted by / 22-Apr-2020 12:29

You may also have access to a new repayment schedule (like an income-contingent plan) that’s a little easier on your wallet.If you don’t care about the extra cash and just want a consolidation for the simplicity of a single monthly payment, you can use any money you save to pay down the principal.Many people use home equity loans for this purpose so they can also deduct the interest from their income taxes—something you cannot do with most other types of debt.When you consider that you can end up paying a lot less interest by consolidating your higher-interest debts under one lower interest rate, debt consolidation sounds great.

The downside is that your grace period will end once your consolidation loan goes through.

Here’s where you can learn about topics including consolidation of private vs.

federal (or national) student loans, forgiveness programs and how they differ from consolidation, how to apply for a consolidation loan and many others.

Those who consolidate their debts must be prepared to make changes in their lifestyle to prevent themselves from getting back into debt on top of what they have already consolidated.

For instance, once you have consolidated your credit card debt, cut up all your credit cards so you won't be tempted to use them.

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Carson received her Bachelor of Arts in English from Arizona State University.