How does consolidating your student loans hurt you in the end?
That’s what many people tell me. Some say it’s beneficial, & others say it’s harmful & raises your interest rates. Because of Hurricane Katrina, I had to get student loans, going to 3 different schools (of course, during the period of the aftermath). I’m on a fixed income (disability), trying to improve my life. I don’t want to discharge my loans. I feel like I didn’t go to college for nothing, & I feel it’s MY duty to pay the loans back. I want to fulfill the dreams of my career, despite my disability. So is it a good or bad idea to consolidate, & how do I do it?
Truthfully, it depends on the types of loans that you have. If you have government loans like Direct Loans (unsubsidized and subsidized loans) and perkins loans, they can’t be consolidated with private loans. It can be beneficial in that it can lower your payment. When you consolidate your loans with one lender they just basically buy out all of your other loans and then you just owe one lender (bank). The reason why it may not be beneficial for some is that there are some loan forgiveness programs out there for people in certain careers, for example education, and I think that nursing might also be another one. After so many years of service in a particular field or place you can have your loans forgiven or even discharged. For education, I know that they have a loan forgiveness option. So, basically I think that you should do a little research , also think about the interest rate that your loans are at, and how that would change it they were consolidated together. Would it be cheaper for you to pay each of them individually monthly, or put them together and pay one flat amount. Just take some time and do some research. Good Luck
