If I consolidate, will I lose all of my deferment eligibility?
No. Borrowers retain the core deferments which can be key to student loan repayment, including in-school, graduate fellowship, rehabilitation training, economic hardship, and unemployment deferment eligibility.
Will I have to extend my repayment period and pay a great deal of additional interest if I consolidate?
No. Borrowers are not required to extend their repayment terms on their Federal Consolidation Loans. Many borrowers consolidate simply to lock in a fixed interest rate or gain the convenience of one monthly payment. This will be especially true this year due to the low fixed interest rate.
Is consolidation for borrowers who don't know how to manage their money?
No. Refinancing student loans through consolidation is a proactive financial management decision, not a borrower's last resort. Borrowers choose to consolidate to take advantage of a number of benefits, including low fixed interest rates, flexible repayment options, and single-billing convenience.
If I consolidate, will I be in debt and incurring excessive interest for a lifetime?
No. For inexperienced borrowers student loan consolidation can be a significant first step toward savvy financial management. Many borrowers choose to consolidate simply to achieve a fixed interest rate while keeping their repayment terms at 10 years or less.
Is it true that an online consolidation loan application is as good as one made in person?
Student loan consolidation is an important financial decision and should be discussed with a qualified loan counselor. The web-based applications offered by many lenders can be a convenient means of obtaining a consolidation loan after the borrower has contacted a professional to explore the repayment options and other key points of consolidation.