Purpose of consolidating student loans dating disasters mtv
Understanding all the benefits will help you make a good financial decision.Here is an overview of some of the many benefits: Consolidation may not be the best option for everyone.
A student loan consolidation takes the borrowers loans and combines all the loans into one new loan with one lender, and one weighted average interest rate.
This removes the burden from the borrower of trying to keep track of many different loans, with different lenders, balances, and interest rates.
Common sense dictates that managing one student loan as opposed to two or even more is logistically simpler and psychologically less burdensome as well.
For busy professionals, remembering to make one larger payment a month rather than several smaller payments is much less of a hassle, meaning there’s less of a chance for missed payments, unnecessary compounding interest, and late fees.
Although the program existed since then, it was not until President Obama’s budget in 2010 switched all new student loan lending over to the Direct Loan program.