Re consolidating student loans


Assuming that you’re currently trying to manage more than one student loan payment a month, you already know how overwhelming it can be.How many times have you procrastinated on paying your student loan notes simply because the mere thought of sitting down to make all those payments causes anxiety?In this way, deferments are far superior to forbearances, but it may be more difficult to qualify for a deferment.For example, you may have to prove that you’re currently unemployed or that you’re experiencing an economic hardship.This can cost you several thousand dollars by the time the loan is finally paid off.Even so, for millions of Americans struggling to balance the budget each month, student loan consolidation can provide significant financial relief in the short term.Although both will postpone payments for a specific amount of time, deferments and forbearances are not the same things.If you qualify for a deferment, you’re not only postponing payments, you’re putting interest on hold as well, which means it doesn’t cost you anything to defer your loans.



Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.For example, the government’s Pay As You Earn (PAYE) and Income-Based Repayment (IBR) programs allow borrowers to make reduced monthly payments based on financial hardship.But if your income is over a certain threshold, you won’t benefit from these programs.For example, under the Public Service Loan Forgiveness Program (PSLFP), your Direct Loan balance may be eligible for forgiveness after 120 payments if you’ve worked in the public sector that entire time.

Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.

Are there other monetary benefits to consolidating student loans, though? Combining smaller loans into one larger loan can open up opportunities for alternative repayment plans that you may have been unable to access with an unconsolidated loan such as income-based repayment, graduated repayment, and extended repayment.