Benefits of consolidating private student loans pb 210 dating sediments

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The following types of loans may be consolidated, including loans made in the FFEL program and the Direct Loan program.Private student loans may not be included in a federal consolidation loan.It can reduce the pressure on the borrower’s budget by reducing the monthly loan payments (albeit by stretching out the term of the loan and increasing the total payments).

If a borrower’s private student loans were obtained with a cosigner, and the private consolidation loan does not involve a cosigner, consolidating the private student loans releases the cosigner from his/her obligation. However, since the interest rates on a private student loan usually depend on the higher of the borrower’s and cosigner’s credit scores, this may lead to an increase in the interest rate on the private consolidation loan, unless the borrower’s current credit score is better than the cosigner’s previous credit score.Repayment terms are typically extended (usually up to 20 years) and interest rates are often competitive.A private consolidation loan combines several private student loans into a single, more manageable loan.Other forms of consumer credit, such as credit card debt, mortgages and auto loans, may not be included in a federal consolidation loan.Only one borrower’s loans may be included in a federal consolidation loan.

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