What are some of the disadvantages of getting a Direct Consolidation loan?
What will be an ideal response?
While loan consolidation can simplify loan repayment and lower your monthly payment, it also can significantly increase the total cost of repaying your loans. Consolidation offers lower monthly payments by giving you up to 30 years to repay your loans. But, if you increase the length of your repayment period, you'll also make more payments and pay more in interest than you would otherwise. In fact, in some situations, consolidation can double your total interest expense. If you don't need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan.
You also should take into account the impact of losing any borrower benefits offered under repayment plans for the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You may lose those benefits if you consolidate.
You might also like to view...
Which of the following practices would NOT help dual language learners achieve at high levels in English?
A) model the language for children B) give opportunities for practice C) pair dual language learning students together D) draw attention to similarities between cognates
It takes Karen 30 minutes to complete 20 multiplication examples. Her teacher wants this reduced to 15
minutes. The most appropriate design for this example is: a. reversal design b. multiple baseline design c. changing criterion design d. AB design
Answer the following statement(s) true (T) or false (F)
In 2011, a white or mixed-race student in middle school was less likely to have received more services than an American Indian or Alaskan Native.
According to Ginzberg's theory, a person's occupational choice results in being:
a) at the right place at the right time. b) determined by the forces of production which currently prevail. c) dominated by parents, counselors, and significant others in the person's life. d) a compromise between an ideal preference and available job opportunities.