Pros and cons of consolidating student loans best dating site match or eharmony
Kimberly Schrant, financial coach and CPA, who runs Kansas Money Coach.com, advises, “Everyone’s life is different, so there is not a cookie-cutter approach to this part (or any part) of a personal financial plan.” With this in mind, let’s look at some of the details the pros suggest you consider before you make up your mind.The first thing to consider is why you want to refinance or consolidate your student loans.Hylland continues “If refinancing enables you to pay off higher interest debt, or save more into retirement accounts, it may be beneficial in the long run.” Is your goal a lower interest rate, a more manageable monthly payment, or freeing up cash for other purposes?Nail down the purpose and motivation for consolidating your student loans first. If you want to consolidate federal student loans, you’ll want to look at the Direct Consolidation Loan program first.
Some people may want to refinance all their loans, and for other it may make sense to only refinance some of them.
“…having a lender with great customer service is important.
When talking to people dealing with student loan repayment, a complaint often heard is that the lender's customer service leaves a lot to be desired.
If you extended your repayment term to help get you through financially challenging times, and later find yourself earning more, paying your debt off early can save you hundreds, even thousands of dollars over the life of your loan.
This can help you achieve other goals, such as buying a home, saving for retirement, or saving for your children’s education. Check out our Student Loan Consolidation and Refinancing Calculator!