Consolidation - good or bad?

Discussion in 'General Distance Learning Discussions' started by back2thebooks, Nov 30, 2015.

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  1. back2thebooks

    back2thebooks New Member

    Hi,
    I would appreciate any advice or knowledge on consolidating student loans. Is it a good thing or not so good? Are there any institutions that are better than the others for doing so?

    Again, your feedback will be appreciated!
     
  2. Kizmet

    Kizmet Moderator

    Once upon a time I consolidated my loans because it was easier (cheaper) to make one slightly larger payment per month than three separate payments per month.
     
  3. back2thebooks

    back2thebooks New Member

    Consolidation

    I remember you refinancing your home That sounds like it was a good idea. I cannot refi to include my loans because I think my neighborhood has decreased in property value, which is a sad thing. When I bought my house it was a nice, brand new subdivision.

    I was curious to other options. Someone told me that when you work in public service your loans may be forgiven after 120 payments.
     
  4. Kizmet

    Kizmet Moderator

    Yeah but the consolidation happened before the real estate deal. Two separate deals.
     
  5. jhp

    jhp Member

    Only if
    1. your final interest rate and accrual lower (not just a wash) once the cost of refinancing is included, and
    2. you are not going out six months from now and get a new 2nd mortgage/loan.

    If you cannot save significant money over the life of the new loan, do not do it. Looking at the monthly payments is not enough.

    Programmatically

    If
    old mortgage+old 2nd mortgage > new mortgage + refinance cost, &&
    length(old mortgage+old 2nd mortgage) > length(new mortgage + refinance cost)
    Do,
    else
    pay off higher interest mortgage first (using extra payments), then other mortgage.
     

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