View Full Version : When is Stud. Loan Consolidation not good?


henrybemis
When should someone with a large student loan not consolidate? Is all consolidation good? I've heard it can extend your payments and wind up adding even more to your over bill.
Thanks.

osterperson
Look @ the numbers
Don't consolidate a tax-free or low rate loan.
The higher rates you can consolidate if the numbers look good.
Common sense goes a long way here.

henrybemis
Well, I have three stafford loans totaling $47,242. There interest rates are: 6.87, 6.56, 6.79. I need advice bec. I really don't want to get into a deal where I'm paying over a longer period of time just for a present lower rate. I want to pay as much as I can now.
Thanks.

clydewolf
Paying a lower % rate would allow you to make a larger payment on the principal.

Also you can make extra payments on the principal to shorten the payoff period.

If you can get a lower interest rate, do it.

Most student loans also offer a reduced rate for automatic withdrawl.