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03:05
Sajid Ali
If interest rates rise on student loans, many college students begin to consider student loan consolidation. There are advantages and disadvantages to consolidate student loan. This article discusses the advantages and disadvantages of student loan consolidation.
Pro
Consolidating student loans will lock the current interest rate. This means that if interest rates go up, you are still responsibleonly for your original fixed interest rate. Unconsolidated student loans have variable interest rates that fluctuate from year to year.
Consolidation loans generally have longer repayment periods. Unconsolidated student loans have a maximum repayment period of 10 years. Consolidation loans may have repayment periods up to 30 years. This means that monthly payments may be lower on consolidated loans.
Cons
On unconsolidated student Loan the government pays the interest on the loan for six months after graduation. This means that it will not be responsible for payment in this period. However, the consolidation of student loans will lose this grace period. You are responsible for making payments on the loans immediately after graduation.
When you consolidate, you are stuck on the current rate for the duration of the loan. If you can not consolidate, the interest rate varies dependingeconomic conditions. It 'possible that interest rates are lower than the current speed in the future. Visit www.abcloanguide.com services for various student loan consolidation.
If you consolidate into a longer period and make only minimum monthly payments, you pay more in interest than you would on a shorter repayment plan. This could cost thousands of dollars for the duration of the loan...
Pro
Consolidating student loans will lock the current interest rate. This means that if interest rates go up, you are still responsibleonly for your original fixed interest rate. Unconsolidated student loans have variable interest rates that fluctuate from year to year.
Consolidation loans generally have longer repayment periods. Unconsolidated student loans have a maximum repayment period of 10 years. Consolidation loans may have repayment periods up to 30 years. This means that monthly payments may be lower on consolidated loans.
Cons
On unconsolidated student Loan the government pays the interest on the loan for six months after graduation. This means that it will not be responsible for payment in this period. However, the consolidation of student loans will lose this grace period. You are responsible for making payments on the loans immediately after graduation.
When you consolidate, you are stuck on the current rate for the duration of the loan. If you can not consolidate, the interest rate varies dependingeconomic conditions. It 'possible that interest rates are lower than the current speed in the future. Visit www.abcloanguide.com services for various student loan consolidation.
If you consolidate into a longer period and make only minimum monthly payments, you pay more in interest than you would on a shorter repayment plan. This could cost thousands of dollars for the duration of the loan...
