Drowning in debt from loans for education: saving consolidation loan? (2)

Consolidation: Thumbs Up or Down?
To consolidate or not consolidate: This is the question. But there is no simple answer.

Consolidation can be a good idea if:

• Do you have a variable interest rate and would prefer a fixed interest rate. This may be a good idea, but you can not wait, and take into account only when interest rates start to go again. And what happens when the variable interest rates stay down or down a fixed rate mortgage?

• They have a series of loans and lenders, and should have a single creditor. One problem - you need them "pay" for convenience, accepting a higher interest rate on some of your debts.

• Need more flexible options for repayment. Repayment options are available through the consolidation are the following:

Standard - fixed monthly payments.
Graduate - the initial payments are low and increase every 2 years.
Extended - to over $ 30,000, an optional fixed or declining.
Income - based on annual income and total debt, adjusted payment for each year is increasing or decreasing. The program provides reimbursement ffel sensitive to income, monthly payments on a percentage of their revenue bases.

Although the Stafford loan programs offer flexible repayment options, the Perkins loan program is not present. Note: An income-based repayment option ffel and Direct Stafford, Perkins, Grad longer available, and Federal Consolidation (less More St) of loans to beneficiaries 1 July 2009.

• You need to feel comfortable at the top of your monthly payments. Carefully before using this option. A payment lower usually means a longer repayment term and pay more interest over time.