Student loan consolidation question?
I heatd from someone that student loan consolidation is filing some type od bankrupcy and that if I have all of my loans from the same lender then they are already going to be just one payment. Is this true? I do have a substancial amount of student loan debt and am about to graduate so is it best to consolidate or to leave it alone since I have always borrowed from the same lender? i would really appreciate your help. Thanks in advance!
Having one leader giving you one bill is not the same as consolidation. When you took out the loans, most likely you took them out on a variable rate of interest, meaning that the FED can raise or lower the interest rates every six months to fit the economy… I believe now it’s at around 5 something for student loans. When you consolidate them, you lock them into the current interest rate- and from then on out, they will remain at that rate. This is good if the rate is low, bad if the rate will drop. The rate drop drastically a few years ago and has steadly been going up. But when I graduated in 2000, it was as high as 8 percent…. it’s probably in your best interest to consolidate now- but you may want to talk to some people.
