Consolidating private student loans great lakes
If you're a parent, and you borrow with a PLUS loan to pay for your children's college, you should never consolidate these loans. This is typically a bad idea because PLUS loans don't qualify for income-based repayment programs like IBR, PAYE, or Re PAYE.As such, if you consolidate, you're at a loss of these programs.)It seems like a roundabout way to go about paying your debt: I mean, you are taking out a new loan to pay off another loan. The reality is that, if you are currently having trouble keeping up with payments or digging yourself out of debt quicker, a debt consolidation loan may be just the solution for you. Student loan consolidation is the process of combining your Federal student loans into one single loan.Furthermore, there are other potential benefits to taking out a consolidation loan as well (such as being able to take advantage of student loan forgiveness programs). For example, you might have 3 or 4 different student loans by the time you graduate college (one for every year you went to school).Student Loan Refinancing: This involves getting a private loan to replace some (or all) of your existing student loans.You can consolidate Federal loans, but you cannot consolidate private loans.
Student Loan Consolidation: This is a free program to combine your Federal student loans into a new Federal student loan.
WARNING: DON'T MAKE THIS STUDENT LOAN CONSOLIDATION MISTAKEThe first big problem that can happen with student loan consolidation is that, since you can consolidate just about every type of Federal student loan, you can accidentally put a loan type in your new consolidate loan that prevents you from having certain repayment plans. You can't transfer it to them, and you can't allow them to consolidate the PLUS loan into their loan.
The most common problem involves PLUS Loans Made To Parents. However, if you're a parent with other student loans in your name, and now you have this PLUS loan, you could potentially add it to your other loans via consolidation.
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