The prospect of debt forgiveness may seem like a dream come true.
In reality, though, not that many people end up being eligible.
After consolidating, you have only one interest rate and make only one monthly payment, instead of having multiple rates and payments.
Simplifying your life is a side benefit of consolidation – the main reason people do it is to get a fixed lower interest rate so they can pay their debt down faster.
We’ll walk you through some of the key considerations as you decide whether refinancing or consolidating is right for you (there are even situations where you might want to do a mix of both).
If you have a federal loan, you may also be able to get all or part of your loan forgiven through certain types of volunteer work, military service or medical practice.That’s a taste of the frustration that student loans can bring into your life.And much like those dominos, a school loan can knock stuff over in your life—and you’ll be left to pick up the pieces.The same is true for student loan debt consolidation, except that federal student loans cannot usually be consolidated with other debts.Private student loans can be consolidated with other debt in some case – for example by rolling them into a home equity loan (see below).