It persists because there are numerous reasons borrowers should or shouldn’t consider consolidating.
Even student loan experts agree that giving advice about consolidating student debt is complicated, riddled with answers including “if” and “it depends.” Yu says the confusion starts because many borrowers don’t understand their loan types, whether they’re federal direct loans, Federal Family Education Loans (FFEL), or private loans.
However, debt consolidation is sometimes a tradeoff, an exchange of easier payment terms for a more expensive loan, since you may pay more interest on the same sum over a longer period of time.
For federal PLUS loans, you probably have access to a six-month deferment (see details here and here). Stay in Touch with Your Lender: Whenever you move or change your phone number or email address, tell your lender right away.
If you have both federal and private loans, you may want to consolidate your federal loans together and your private loans together, but it’s rarely advised to consolidate them all into one loan..
Keep in mind that federal loan consolidation won’t typically lower your interest rate.
It can make your monthly payments simpler or give you access to more favorable repayment plans or forgiveness programs.
Learn more about Federal loan consolidation is a government process, while private loan consolidation happens through private lenders.