Frequently Asked Questions

The answers to the most commonly asked questions about cheap student loan consolidation are listed below.

Does consolidation have any disadvantages?

Cheap student loan consolidation may have some disadvantages in certain cases. For one, consolidation might require you to extend the term of your loan if you wish to reduce your monthly payment. As with any loan, an extended term would mean higher interest expenses in the long run. Secondly, consolidating certain student loans might cause you to lose some borrower benefits, such as discounted interest rates. Lastly, you may choose to consolidate your student loans at a time when interest rates are not optimal. Consolidating your loans when interest rates are high will not save you much money.

Will cheap student loan consolidation hurt my credit?

No, consolidating student loans does not hurt your credit. Your current loans will be paid off in full by your new lender once the consolidation process is complete. The important thing to remember is that you must continue making payments on your existing loans until the lender receives the check or wire transfer from your new lender. Failure to do so will result in late payments and derogatory items on your credit.

Can I include student loan debt in a bankruptcy filing?

With federal loans, you cannot include student loan debt in a bankruptcy filing. Private loans have different rules. For more detailed information, talk to an attorney.

If I have private education loans, can I still use cheap student loan consolidation?

Absolutely. Almost all student loans, including private loans, are eligible for consolidation. The main difference between consolidating public and private loans is that federal loan consolidation is usually free, whereas private consolidation loans have the same expenses as any private loan.

How can I make my monthly payments more affordable?

Cheap student loan consolidation can help you make your payments more affordable in several ways. For one, if interest rates have fallen since you took out your education loans, you can capitalize on interest rate savings by consolidating. Alternatively, you could lengthen the terms of your student loans to stretch the payments out over a longer period of time, thus making them more manageable.

What do I do if I've graduated and can't find work?

If you've graduated, can't find a job, and have student loan payments to make, you can either consolidate, request a deferment, or apply for forbearance. On Parent PLUS loans, payments can also sometimes be postponed.

Another option that is possible for paying off payday loans is community service. Look at the information we have provided about this option.