Advantages to consolidating student loans
That's exactly what you'll find at American Consumer Credit Counseling (ACCC), a non-profit organization dedicated to educating consumers about paying off debt and living life debt free. At ACCC, we offer free credit counseling sessions where you can learn more about working with debt consolidation agencies, about debt consolidation advantages and disadvantages, and about the many other ways of paying off your debt.Our credit counselors are certified and highly experienced.
Refinancing is when you take out a new loan under new terms — generally at a lower interest rate — and use that to pay off your original student loans faster or at better rates.The average American college graduate with student loan debts owes more than $22,700 -- and two out of every three graduates leaves school with not only a diploma, but with education debts.Depending on how many years you attended school -- including undergraduate and graduate work -- and your financial situation at the time, it's possible to have accumulated more than one student loan while on campus.The interest rate on consolidated loans is often lower than what is currently paid.Borrowers in default on a federal student loan are eligible for a consolidation loan if certain conditions are met.When it comes to debt consolidation, it's important to be aware of the advantages and disadvantages before you take on new debt.
Debt consolidation, or credit card consolidation, involves taking out a new loan to pay off multiple debts or credit card balances. Debt consolidation companies argue that borrowing money at a low interest rate to pay off loans or credit cards at a higher interest rate can save you money, or help you pay off the debt sooner.
Other advantages include having fewer payments to make each month, and less likelihood that you'll be late on payments.
What you rarely hear about are the disadvantages of debt consolidation.
Since 1991 we've helped thousands of individuals and families pay off their debts and make a plan to avoid debt in the future.
Our counselors can answer all your debt consolidation questions, from debt consolidation advantages and disadvantages to debt consolidation qualifications.
Loan consolidation can simplify the loan repayment process by allowing the borrower to combine several types of federal student loans and repayment schedules into one.