What is debt consolidation and what does it entail?
Question:
Answer:
Consolidation means you pay off all your federal or private student loans and get one new loan for the total amount you owe. Many students consolidate for two main reasons: they get to have just one bill and one place to manage their loans and by extending their repayment term (up to 30 yrs) they can lower their monthly payment amount.
Keep in mind that if you pay the minimum each month, you will end up paying more interest over the life of the loan (just like a credit card).
Lots of shady characters have entered the consolidation market lately - so it's important to stick with a large, reputable company that has experience in consolidation and won't just "flip" your loan.
Sallie Mae has lots of information on its website, including an FAQ and a calculator so you can see what your monthly payments might be.
www.salliemae.com/consolidatio...
It's another way of saying that you are going to aggregate all your student loans into one loan. This way you don't have to pay multiple lenders, you just have one loan and one payment. We offer a student loan consolidation program, if you are interested in learning more.
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