Loans that can be consolidated include direct subsidized and unsubsidized loans, subsidized and unsubsidized Stafford loans, direct PLUS loans, SLS loans, Federal Perkins loans and Health Education Assistance loans, among others.Private education loans are not eligible for consolidation.
The most obvious benefit of a consolidation loan is that you can replace your multiple loan payments with a single payment.
Sometimes, you can fix a lower interest rate to that single payment than the average rate that you were paying on your other multiple loans, which is especially beneficial if you are able to turn variable rate loans into a single, fixed, low-interest rate loan.
It’s important to note, however, that a DSP will have a negative impact on your credit.
As with the DMP, you’ll also receive financial education to help you get and stay out of debt for the long term.
, Care One will negotiate with your creditors to pay back a portion of your existing debt.
This is a good option if you have more debt than you can pay down.The lender will pay off your credit card bills, and in exchange you’ll enter into a loan agreement with the lender to pay back the money.For a credit card consolidation loan to be worth your while, you’ll want a plan that offers a lower interest rate and/or lower monthly payments than you’re currently paying to your creditors.Both put the control in your hands, which can be good or bad, depending on how disciplined you are.Remember, you’ll need to not only put together a budget, but stick to it as well.You may be able to extend your repayment terms, pay a lower average interest rate, reduce your monthly payment amount, fix your interest rate or simply benefit from having a singular, simplified and streamlined monthly payment amount.