Affording College Can Be Tough As Tuition, Board and Other Costs Rise Rapidly


You or your parents may be attempted to take out a private student loan. Unfortunately, many borrowers will take out a private student loan without first exhausting their federal student loan options.

What Are The Disadvantages Of Private Student Loans?

The disadvantages include:

1. An unaffordable fixed rate;
2. Inflexible repayment options;
3. Interest accrues on all private student loans from the time that they are disbursed.
The interest rate and fees are based on that of your credit history or that of your co-signer;
4. Being required to have a co-signer who will be responsible for paying back the debt as if they received the money;
5. No eligibility for student loan discharges;
6. Limited or no options for deferment;
7. It is easy to default. If you fail to make a payment your loan is immediately in default and all the principal interest and fees are due.

What Should I Do If I’m Having Problems With My Private Student Loans?

It’s time to contact student loan attorney, Nancy L. Cavey who can help you, regardless of where you live in the United States. She can provide you with an analysis of your student loans and a roadmap regardless of where you live in the United States to get your student loans under control.

Consolidation of a student loan is similar to refinancing a student loan. You can consolidate one or some of your student loans.

You may have heard radio or television ads offering a consolidation as a solution to all of your student loan problems. While it may be a good strategy to get low monthly payments or get out of default, it’s not always a good idea.

The Five Reasons Why You Do Not Want To Consolidate Your Student Loans

1. If you have new student loans you won’t save as much interest on consolidation. The wiser step would be to simply go into an income based repayment plan like IBR or a re-payee.

2. Consolidation will extend how long you have to repay the loan. It will lower monthly payments by it increases the costs of interest over the life of the loan. In other words, it costs more and takes longer to pay it off.

3. You lose valuable rights by consolidating your student loans. In fact, it’s dangerous to consolidate a federal loan into a private student loan. You’ll lose your rights under the federal loan programs once you consolidate with a private lender. That’s a bad move.

4. Consolidating direct loans will and the Plus loan taints the entire consolidation loan. That means that you will not be able eligible to repay the consolidation loan using IBR or other repayment options. Combining a Parent Plus loan with anything can be down right dangerous.

5. You have to have the right mix of loans. You must have at least one outstanding FFEL or direct loan to obtain a direct consolidation loan. You can consolidate subsidized and unsubsidized Stafford loans, supplemental loans for students (SLS), federally insured student loans (FISLS), Plus Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans, (and appeals).

You Generally Only Have One Chance To Consolidate A Student Loan

That could be problematic if ultimately you default because one of the ways to cure a default is through consolidation. You’ve already taken that option off the table if you’ve consolidated.

What Should I Do If I’m Thinking About Consolidating My Loans At This Time?

It’s time to contact student loan attorney Nancy L. Cavey who can perform an in-depth analysis of your student loan and chart a road map that will help you pick the right option and a path forward. You owe it to yourself to understand your student loan situation so that you can make the right decision before you consolidate your student loan.

Call today at (727) 828-9955 for a complimentary consultation.

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