Consolidating your student loans can reduce your monthly payments and help you get out of debt faster. But many factors should be considered before choosing a consolidation program. You’ll want to make sure that the company you’re dealing with is trustworthy, and also that they charge fair interest rates on their private student loan consolidation products.
What Are The Risks Of Consolidating Private Student Loans?
You could lose access to income-driven repayment plans. If you consolidate your federal student loans with a private lender, you may lose access to an income-driven repayment plan–and if that happens, you’ll likely end up paying more than you would have if you had kept your federal loans separate from those made by private lenders. If this is something that concerns or worries you, then it’s best not to consolidate at all!
How Do Consolidation Programs Work To Help Borrowers Manage Their Debt?
Consolidation programs services like Axis Financial Solutions are different from refinancing, which refers to the process of obtaining a new loan with better terms than your current one. While consolidation can help you get rid of your private loans and make payments to one lender, it does not typically lower interest rates or extend repayment periods.
There Are Many Different Options That You Can Use To Consolidate Your Student Loans.
There are many different options that you can use to consolidate your student loans. The federal government offers a variety of repayment plans and loan forgiveness programs, which you should consider before Axis Financial Solutions consolidating your student loans. These include:
• Income-driven repayment plans, which have income-based payments and forgiveness after 20 or 25 years (depending on the type).
• Public Service Loan Forgiveness (PSLF), is an option for teachers, police officers, and other public service employees who work full-time at qualifying organizations while making 120 monthly payments over 10 years without any breaks in payments
Conclusion
Hope that this article has helped you understand the different options for student loan consolidation. If you have any questions or concerns about your situation, contact the nearest consolidation service near you.
