Benefits of consolidating your student loans
Student loan consolidation allows borrowers to combine multiple loans into a single, new loan with a new interest rate, repayment options and terms.It’s a myth that student loan consolidation will save you money.If you’re enrolled in a student loan forgiveness program, be wary about loan consolidation.
To take advantage of the convenience of loan consolidation without paying more over the life of the loan, stay away from extended repayment plans.
Unless your goal is to save money on your monthly payments, consolidating your student loans will generally cost more over the life of a loan.
Loan consolidation may have helped borrowers save money in the past, but the rules have changed.
In fact, they’re not eligible at all for income-based repayment plans, and they also come with restrictions that can negate these options for your own student loans.
In other words, if you have your own student loans and want to consolidate them with the Parent PLUS loan you took out for your child, the Parent PLUS loan will cause your own loans to lose income-based repayment options.