One effects consolidating your student loans
It’s important to note that when you refinance, you can decide which loans you want to refinance and which, if any, you’re happy to keep at their current terms.
Some people may want to refinance all their loans, and for other it may make sense to only refinance some of them.
It’s important to remember that there are different types of loans — most significantly, there’s a big difference between federal loans (those issued by the U. government) and private loans (those issued by a bank, credit union, or other lending institution).
Each has its own pros and cons, which we’ll get into in a little bit.
Hopefully, you tried to take advantage of financial aid in college — specifically, federal student loans — before turning to private loans, which often carry a higher interest rate and come with fewer borrower benefits.That can help you meet your other financial obligations.The trade off is that because you repay the debt over a much longer period, it will cost you more over time to repay, even at a lower interest rate. There are both benefits and drawbacks to consolidating your loans, which we’ll discuss in this article.Choosing to consolidate your loans is an individual choice and the right decision will depend on the specifics of your loans — the types of loans, interest rates, balances, borrower benefits, and more — as well as your current financial situation.