Do's and Don'ts About Student Debt Consolidation

Do's and Don'ts About Student Debt Consolidation

For many fresh graduates, college student loan consolidation is one of the best financial solutions for those who are unable to make payment, especially when the economy is bad and the unemployment rate is high. Here are some dos and don'ts that you need to bear in mind before making decision for student debt consolidation.
Dos

* You should put in hard effort to look for the best interest rate in the market before you make your decision to consolidate your study loans. Doing thorough survey and making careful comparison are important as the purpose of debt consolidation is to save your cost in the long run.

* You are advised to put the priority on consolidating your federal loans before the private loans

* It is necessary for you to consolidate your loans when your budget is very tight and it is a need for you to extend the period of payment

Don'ts

* Don't pay any processing fee to any company as debt consolidation is free

* Don't consolidate your student loans when you have almost paid off your outstanding balances. If you do so, you will increase your total debt further.

* It is no point for you to consolidate your loans if the consolidated interest rate is still as high as your current rates

* Avoid consolidating federal and private loans together because you may lose the benefits that are extended to you by the federal government

By knowing the dos and don'ts, you will be able to weigh the pros and cons for consolidating your study loans.