This helps eliminate mistakes that result in penalties like incorrect amount or late payments.There are three major types of debt consolidation: Debt Management Plans, Debt Consolidation Loans and Debt Settlement.Having more accounts is not automatically a negative factor in your credit history.For such installment loans, the important factors are how much total debt you owe and, of course, most importantly if you have missed any payments. It can be helpful if you have education debt from multiple lenders or student loan guaranty companies.It is a little confusing because after you graduate, you probably will write one check to the lender each month to pay for the entire amount you borrowed.
The reason has to do with the way student loans actually work as opposed to how we think about them.
Direct consolidation loans are now the only type of federal student consolidation loan.
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
It's still possible, however, to benefit from consolidation if you explore your options and proceed with caution.
Finding the right bank to refinance or consolidate your student loans is confusing.
If you need help getting out of debt, you are not alone.