Your grace period on some loans could end prematurely, or you may end up consolidating at the wrong time – too early or too late.
The lender issues a new loan based on your creditworthiness.
You may be able to save money and lower your monthly payment by refinancing your student loans with an interest rate reduction.
You are likely to lose any grace periods that your loans currently enjoy after a loan consolidation, meaning that you have to begin making payments immediately.
Sometimes a new lender delays your payments to compensate for this, but not always.
One more thing about interest rates: Most people obsess over interest rates.
While it is important, take a step back and look at the big picture.
It is also possible to move into an alternate repayment plan to accommodate your changing life circumstances.
Maybe standard, 10-year repayment plans are no longer the best option for you.
You may be able to extend your repayment terms, pay a lower average interest rate, reduce your monthly payment amount, fix your interest rate or simply benefit from having a singular, simplified and streamlined monthly payment amount.
However, loan consolidation is not always the answer.
The real questions that need to be answered are “How Much will this cost to repay?