Is consolidating student loans a good idea


Debt consolidation is not for everyone – especially through a company specializing in consolidating debt – which is usually expensive, costing you hefty fees for their service. First thing you should know is there are different kinds of debt consolidation.This is especially true if you have a bad credit score.Repeat after me: NEVER CONSOLIDATE FEDERAL LOANS WITH PRIVATE LOANS!QUESTION: Lisa in Arizona and her husband are on Baby Step 2.All of their debt is student loans, and they owe ,000.But before you head down that road, here’s what you should know.If, like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.


Then if you add up the new rate and multiply it by the total of all of them combined equals a certain dollar amount.And each of these options comes with pros and cons. You won’t need to borrow against any collateral like your home, but you will probably pay more in interest.


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