If you can manage to add, say, an extra and pay 0 each month, you could in fact offset the time disadvantage that is introduced by paying less money towards your student loans.Note: This doesn't apply to Spousal consolidation loans.For an explanation of our Advertising Policy, visit this page.Getting rid of student debt is high on the radars of everyone who has it.WARNING: DON'T MAKE THIS STUDENT LOAN CONSOLIDATION MISTAKEThe first big problem that can happen with student loan consolidation is that, since you can consolidate just about every type of Federal student loan, you can accidentally put a loan type in your new consolidate loan that prevents you from having certain repayment plans. You can't transfer it to them, and you can't allow them to consolidate the PLUS loan into their loan.The most common problem involves PLUS Loans Made To Parents. However, if you're a parent with other student loans in your name, and now you have this PLUS loan, you could potentially add it to your other loans via consolidation.
And if you miss one, you could end up harming your credit score.Your new consolidation loan gives you choices in repayment plans – you could switch to an income-based repayment plan, or the extended plan.If you switch to any other repayment plan, you will end up paying more over the life of the loan.Student loan consolidation makes this easier on you by making those 3 different loans into a single loan to make payments on. Although, a debt consolidation loan helps to simplify and streamline your payments, a downside to getting it is that your new lower monthly payments could also lengthen the amount of time you will have to pay off your loans by.Tip: You could easily offset this by paying a little more each month.
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This could also mean you won't qualify for student loan forgiveness programs such as PSLF. Consolidating your student loans could end up costing you more over the life of the loan if you forget a couple of things.