Pros and cons of consolidating federal student loans

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By reorganizing loans under a single repayment umbrella, some of the loans may shift from the higher interest terms they originally carried, to more favorable rates offered through consolidation.It is important to recognize your current rates, and compare them to potentially lower consolidation options.If your Perkins Loans already carry low rates, it may not benefit you to consolidate.Another consolidation benefit realized by students having difficulty keeping up with student loan payments, is restructured repayment.Perkins Loans feature special benefits and perks that are not always recommended for consolidation.

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If you are, or will be, a public school teacher, or if you teach math, science or special education subjects, you may qualify for Perkins loan cancellation.

Many students who enter college must take out loans to pay off their tuition, room and board and other expenses.

The thousands of dollars in student loans can be overwhelming for some people, and they wonder how they will pay off all their loans on time.

When Perkins loans are consolidated alongside other outstanding federal loans, the cancellation benefit is eliminated.

Perkins Loans may be consolidated through the Federal Direct Loan Consolidation Program, provided eligible borrowers also hold at least one Direct Federal Loan other than the Perkins that is to be consolidated.

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