Pros and cons of consolidating school loans

Deferments are given for economic hardship, unemployment, and returning to school.

During deferment, you don't have to make student loan payments.

If you want to work towards loan forgiveness, be careful.

Including certain loans, such as the Parents PLUS loan, may make you ineligible.

Always talk to your servicer before making a choice. You can select between the Standard Repayment Plan, Graduated Repayment Plan, Extended Repayment Plan, or one of the 4 income-driven repayment plans.

You will have to complete an additional plan request form for the plan you choose. After signing and submitting it, it generally takes about 2 months for the new consolidated loan to be disbursed.

You can refinance federal and/or private student loans, but you will have to pass a credit check.

There are several loans in the Direct Loan Program.

It is one of the largest student loan programs available.

Just make sure you are aware of the full cost of the loan over its entirety.

Qualifying payments you already made for loan forgiveness may get erased. Most loan forgiveness programs require you to make 120 loan payments before you can have any of your loans forgiven.

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