Pros and cons of consolidating federal loans stop us army dating scams
If you experience a “funding gap” because federal student loan caps restrict you, private student loans can be one way to make up the difference.When you default on your federal student loans, there is no statute of limitations.For graduate student loans, the cap is 8,500 — including what you already received as an undergrad.Depending on your degree level, you can borrow up to 100 percent of your cost of attendance with alternative student loans.If you’re going to a pricey private school, you might not be able to get the amount you need if you rely solely on federal student loans.With federal student loans, your aggregate amount borrowed can be no more than ,500 as an undergraduate.Before you take out any debt, make sure you’re making the right decision.Learn the possible benefits and drawbacks of alternative student loans before you forge ahead.
Private student loans are ineligible for these plans.
With private student loans, though, you can be rewarded if you have excellent credit. Current federal student loan rates are higher, especially if you are going to graduate school.
In many cases, alternative student loans come with higher borrowing limits than federal debt.
If interest rates rise over time, so does your variable interest rate — and your monthly payment.
Depending on your loan type, some federal student loans come with an interest subsidy.
While there are some real advantages to private student loans, they’re balanced by some definite drawbacks.