I'm considering consolidating my 2 remaining student loans. Other than the obvious benefit of convenience of only paying 1 bill and not 2 that come in identical envelopes, with the same account number, that have nearly the same amount owed, therefore looking so much alike that you can't tell which is which, what other benefit is there to consolidating? (Assuming the interest rate remains the same.) And what benefit is there to using a federal consolidator versus a private company?
I keep looking at this stuff and I really can't see a benefit other than convenience and maybe having such a long term loan paid off on my credit report and starting something new.
Any experiences? Thoughts? Suggestions?
Why consolidate when you can simply set up auto-pay on a bank account somewhere? I would think it's better to let them remain, continue paying off both, and that way reap the credit-building benefits of having paid off two loans rather than one.
ReplyDeleteI'm sure someone else has better advice.
I consolidated several years ago - it lowered my monthly payment and my interest rate. Plus, after a certain number of years of on-time payment (where autopay is a very good and convenient idea :) it dropped my interest rate another point. I consolidated through the same company that bought out my loans after graduation. Not sure if that helps, but it is actually a good option :) Good luck!
ReplyDeleteI've thought and wondered the same thing. Lately, I've been getting all this junk mail telling me to go with this Joe Schmo company and consolidate/transfer or something my students loans to them instead of B of *. I'm so confused.
ReplyDeleteYes, and good luck...let us know what you decide! ;)
Kell looked at consolidating and her rates would be higher if she did.
ReplyDelete