Don’t Try Student Loan Consolidation Until You Read This Article


You may have heard radio ads or seen television commercials touting consolidation of student loans as a solution for everyone’s student loan problems. Consolidation is similar to refinancing and it may be a good strategy to get lower monthly payments or to get out of default. But it’s not always a good idea to consolidate your student loans.

What Is One Of The Major Problems With Consolidation?

You only have one chance! If you’ve already consolidated a loan with either a federal or direct loan, you can’t reconsolidate except under limited circumstances. This can be problematic because if your having financial problems and default on a consolidated loan, you significantly limit the ability to get out of default.

What Are The Limited Circumstances When You Can Reconsolidate?

These circumstances include;

· An eligible loan that was not included in the first consolidation loan;
· A FFEL borrowers can get a direct consolidation loan if the loan is in default or is being submitted to a guarantee agency for default aversion or you agree to pay under the Income Based Repayment plans.
· You can reconsolidate to participate in the Direct Loan public service loan forgiveness.
· Military service members are allowed to reconsolidate to take advantage of new limits on interest approval for direct loans.

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

It’s time to contact student loan attorney Nancy L. Cavey, who can provide you with a comprehensive analysis of your student loans. She can explain to you your options and the pros and cons, including consolidation.

Don’t be mislead by a T.V. or radio ad claiming that the consolidation will solve your student loan problem. Call today at (727) 828-9955 for a complimentary consultation.

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