What is a consolidation loan and how can I get one?
A Consolidation Loan is exactly what it sounds like – a loan that consolidates all or part of your loans and debt into one easy payment. Consolidation loans typically add time to your repayment schedule and usually offer a lower monthly payment. If you have several loans and are paying interest on each of them, it can benefit you to consolidate and only pay one interest rate. You can obtain a consolidated loan anytime after school separation, providing you haven’t defaulted on any loans. If you have defaulted, there is still hope. If you work with your lender and make satisfactory repayment arrangements, you may still be eligible for a consolidation loan. Borrowers are allowed 180 days after receiving a Consolidated Loan to add additional loans. There are some disadvantages to a Consolidation Loan as well. Because you are paying less over a longer period of time, your repayment total will probably be more than the original payback amount. Additionally, some deferments are not available
