How do I go about choosing which student loan consolidation program to go through and why consolidate?
Current student trying to get a head start on paying off my loans which companies are the most legit and what should i look for? Also why should/shouldn’t one consolidate?
I’m not sure you can consolidate your loans if you are still in school. Are these government loans or private loans? If government, are any of them subsidized loans? If they are, this means they are interest free until you graduate and consolidating might affect that.
Consolidation is a way of locking in a lower interest rate for the life of the loan, and many companies offer bonuses like cash back for 1.25% of the loan after 24-months of payments. Interest rates on loans vary as the economy varies. By consolidating, you lock in the current rate forever. With current rates being close to 8%, I would not recommend consolidating at this time. When rates FINALLY go back down to 6 or 7%, you will be stuck at 8%. Unless you hear that rates are suddenly jumping to 12% in 3-months, hold off.
