Benefits consolidating direct loans

Rated 3.94/5 based on 935 customer reviews

The big issue for most borrowers is can they afford the monthly payment?That’s what consolidation and refinancing are remedies for: giving you a payment that doesn’t break your budget every month.

Refinancing student loans is similar to the Direct Consolidation Loan program in that you bundle all your student loans into one loan and make a single monthly payment, but there are important differences that you should look at before making a decision.That is a sizeable and unwelcome graduation gift so it’s important to know how to minimize the damage.If the money you borrowed was all federal loans, you can find easier repayment options by applying for a Direct Consolidation Loan.However, if federal loans are part of your refinancing, you lose the repayment options and forgiveness programs they offer, including deferment and forbearance.Those last two items can be crucial if you run into financial complications while repaying your loans.

Leave a Reply