Consolidating school debt

The new loan has a fixed interest rate so if rates rise in the future, you won’t have to worry about paying more each month.If you have older federal loans through the Federal Family Education Loan Program or Perkins Loans (like I had), you don’t have access to income-driven repayment plans such as the popular Public Service Loan Forgiveness (PSLF) program.There are two main types of student loans: Each loan type has its own pros and cons and it’s important that you weigh out each one before deciding on consolidating.

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If you’re like most docs with a large debt load, lowering the payments could help give you a little breathing room early in your career as you begin building an emergency fund.Unfortunately, this can severely damage your financial future and delay financial freedom.With dental and medical student loan debt skyrocketing these days, it’s important to pay attention to the conditions and amounts you’re borrowing.The new Direct Consolidation Loan repayment term can also be extended to up to 30 years, but my goal for you it to eventually pay it off as quickly as possible.If any of the student loans you are consolidating have a variable interest rate, consolidating them can help.

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