The extremely high costs of higher learning have caused students around the nation to find alternative ways to pay off their tuitions. Students with these types of needs are easily comforted with different types of student loans from federal loans to private loans. These loans may be easy to get, however paying them off are not.
This is why students with many different loans sway towards federal government student loan consolidation to help them have lower monthly payments. This article will explore the different aspects of a federal government student loan consolidation plan, including its advantages and disadvantages.
Having a student loan consolidation may have many lucrative benefits, such as having lower monthly payments and a longer loan term for the loan. A federal government student loan consolidation allows students to consolidate their Stafford loans, PLUS Loans, and Federal Perkins Loans into one single debt. This allows the term for the loan to be increased resulting in lower monthly payments. In contrast from other student loans, consolidation loans permit you to have a fixed interest rate on the loan. Because of these reasons a federal student loan consolidation plan may reveal itself as being a very appealing option to students.
Nonetheless, even though at first sight a government student loan consolidation may seem extremely attractive, it may in the long run result in a larger total payment. By having longer loan terms this causes the total payment of your loan to be much higher than your original loan. Not only will you pay more in the long run, but any special traits your student loan might have had such as a grace period after you finish college, will be eliminated. This is why when choosing to consolidate your loans it is important to first study how consolidating your loans may affect you in the short and long term.
Even though having a federal government student loan consolidation might increase your total payment many students find this as being their only option to stay in college. Many students prefer to pay less in the short term by stretching their payments into a longer term. Because of this choosing a government student loan consolidation plan is a very hard decision to make when youâ€™re college because of the possible future repercussions it may bring you.