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What is the downside to consolidating student loans?
If you consolidate your loans, you might lose borrower benefits like interest rate reductions, principal rebates, or some benefits related to loan cancellation from your existing loans.
Is it good to consolidate your student loans?
Consolidation could lower your monthly payments when payments begin again. Consolidation, however, may also result in an extension of your loan’s repayment period. For instance, consolidation might lengthen your repayment period from ten to twenty years.
Does consolidating student loans hurt credit?
No credit check is necessary, so federal loan consolidation has no impact on your credit score. However, keep in mind that the federal consolidation program does not offer the opportunity to obtain a lower interest rate.
Can my student loans be forgiven if I consolidate?
If you consolidate debts other than Direct Loans, you might gain access to forgiveness programs like Public Service Loan Forgiveness (PSLF) or income-driven repayment. Any variable-rate loans you have can be converted to fixed-rate loans if you consolidate.