dating a man 20 years your senior - Benefits of consolidating private student loans

Repayment terms are typically extended (usually up to 20 years) and interest rates are often competitive.

A private consolidation loan combines several private student loans into a single, more manageable loan.

Because there are no penalties for prepaying the loan in full or in part, borrowers may make larger monthly payments or extra payments if they wish.

To be eligible for Federal Loan Consolidation, borrowers must have at least one loan from the Federal Direct Loan program or Federal Family Education Loan (FFEL) program that is not in an “in-school” status.

Defaulted loans may be consolidated in certain circumstances.

Other forms of consumer credit, such as credit card debt, mortgages and auto loans, may not be included in a federal consolidation loan.

Only one borrower’s loans may be included in a federal consolidation loan.

It can reduce the pressure on the borrower’s budget by reducing the monthly loan payments (albeit by stretching out the term of the loan and increasing the total payments).

It can cut the cost of the loan if the borrower qualifies for a lower interest rate.Also, federal student loans have numerous benefits and protections that are not available on most private student loans, such as generous deferments and forbearances, income-based repayment and public service loan forgiveness provisions.Federal education loans also offer death and disability discharges; only a handful of private student loan programs offer similar discharge options.Instead, several lenders offer private consolidation loans for consolidating or refinancing private student loans.The new private consolidation loan pays off the balances on the private student loans.Although student and parent borrowers are each eligible to consolidate their loans, they may not consolidate their loans together.

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