Benefits of consolidating a loan
It is a little confusing because after you graduate, you probably will write one check to the lender each month to pay for the entire amount you borrowed.As long as you make the payments on time and in full, the multiple student loans showing on your credit report will not have any negative effect on your ability to get new credit.
If you can’t stop spending on credit cards, for example because you’re using them to pay household bills, this is a sign of problem debt.
CONSOLIDATING STUDENT LOANS Let’s take a look at a few of the pros and cons of consolidating your student loans.
CONSOLIDATING STUDENT LOANS If you have multiple student loans, STUDENT LOAN consolidation can offer some simplicity to your repayment.
Federal consolidation loans allow borrowers to combine several federal student loans into one loan to streamline loan repayment.
The monthly payment amount may decrease because repayment can be spread over a longer time period.