Consolidating private student
A loan must be a federal loan to qualify, private student loans will not qualify for student loan forgiveness.Borrowers that work in public service or in non-profit can qualify for PSLF forgiveness if there student loan meets the program requirements.That is a sizeable and unwelcome graduation gift so it’s important to know how to minimize the damage.If the money you borrowed was all federal loans, you can find easier repayment options by applying for a Direct Consolidation Loan.So you may you just finished celebrating the best 4 years of your life and one of the greatest achievements of your life by graduating with your college degree.Your life and future looks to be full sunshine and promise. Then on one of those bright sunny days a visit to your mailbox ends with a nice little letter describing how for the next 30 years you will be paying back nearly a mortgage payment back for your student loans.
It often comes from different lenders, so it is not unusual to owe money to 8-10 separate lenders by the time you graduate.
Student loan consolidation can help a borrower get out of student loan default.
When a defaulted loan in accepted into a consolidation program the defaulted loan is paid off by the consolidation.
Also, some servicers will allow you to have a lower interest by you opting into a auto payment plan. Student loan default can be a real serious matter if not addressed, Default happens when a borrower has when over 270 days without making a payment.
Student loan default can lead to terrible penalties like, tax offsets, wage garnishments and bad credit.
”There are many benefits to consolidating your student loans.