Pros and cons of consolidating student debt

On the other hand, your loan will likely become more expensive overall and you'll pay it off over a longer period of time.If you've decided consolidation is right for you, you can start the process for your federal student loans at Student If you are going to consolidate, you should probably do it during your first year or two of repayment; otherwise, it might not be worth it.Remember, your Consolidation loan is a new loan, not an extension of your older loans.So, the longer you wait to consolidate, the longer you will pay off your student loans.

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The rules of federal and private student loans change from time to time, and this definitely affects your decision as to whether or not it makes sense for you to refinance your federal student loans (or any type of student loan for that matter).

If you're currently repaying your student loans, you may have identified some problems with the process.

(Besides the "parting with your money," that is.) If you're having trouble staying organized or are worried about missing one of your five loan payments, you have an option that may simplify things for you: consolidation.

So, before we start, keep in mind that what may be true about student loans today could be different in the future and those nuances matter when it comes to making a wise decision about whether or not to refinance student loan debt.

For example, the interest rate for an unsubsidized direct loan for graduate students is 6% at the time of publishing this post.

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