Depending upon the total balance you are consolidating, you may extend the repayment period for up to 30 years with consolidation.
The extended period makes the monthly payment amount more manageable; however, the longer your loans are in repayment, the more interest you will pay over the life of the loan.
My current situation is bad since I am currently being supported 100% since I could not find employment for the last two years.
I am thinking of consolidating all my loans, but should I use the Federal Student Aid to consolidate both the Direct and Stafford loans ( do they consolidate both direct and stafford loans), or is there a different website for the government consolidation for both direct and stafford student loans?
Additionally, borrowers can select a longer term to obtain a lower monthly payment as well.
While refinancing can be a major financial improvement to those who qualify, there’s one (big) caveat.
Loan consolidation can be helpful for borrowers who want to combine their eligible federal student loans into a single Direct Consolidation Loan.
It's important to understand and carefully consider all factors before consolidating.