Does consolidating student loans hurt credit
If you’re paying off federal student loans, you are one of 44 million borrowers with outstanding student loan debt.The Direct Consolidation Loan Program offers several repayment plans that give you up to 25 years to pay off the debt.
To get started, call Debt.org’s trusted partner at 888-502-2105 and let one of their counselors get a snapshot of your overall financial picture.Both federal and private lenders recognize that lower monthly payments help may be the best option, if you don’t get the job you want immediately after graduating from colleges.Find out more about the choices debt consolidation offers.The programs are tailored to your income and family size.You can even switch programs if your financial or family situation changes.While both may be eligible for consolidation, it is important to think of these two types independent of each other when considering consolidation.
Federal student loans are the easiest and most beneficial to consolidate because they offer low interest rates, increased payback terms (which decreases the monthly cost) and because they reduce the number of lending institutions you have to pay every month.
When you decide to consolidate, our partners will make the process easy for you. The federal student loan application process is detailed. Your paperwork will be prepared and submitted for you, after your approval.
A lower monthly payment and a more forgiving timeline is the second chance you’ve been waiting for. All federal loans have fixed payments, so be sure to make your payments on time and feel good knowing you solved your debt issues by being proactive.
For example, instead of making multiple payments to multiple lenders at various times of the month, you simplify the equation by making a single monthly payment.
Learn more about private student loans Private student loans are granted and managed by lending institutions – banks, credit unions, college foundations – and typically charge a higher fixed or variable-interest rate than federally funded loan programs.
It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.