Are there any disadvantages to consolidation loans?
If you extend the length of your repayment through a consolidation loan, you will pay more interest over the life of your loan since you will be making payments (principal plus interest) over a longer period of time. Also, consolidation loans have fewer payment deferment options than some underlying loans. If you qualify for one of the many loan forgiveness options under some loan programs, such as Perkins loans, you should probably not include those loans in your consolidation. Contact your lender for more information.
