You may pay more interest since you'll be making payments for a longer period of time.Plus, the new interest rate is based on weighted average of the underlying loans, rounded to the nearest higher 1/8th of one percent. If you simply need a smaller payment or if you're experiencing a temporary financial hardship, you may want to consider changing your repayment plan before considering consolidation. It’s not a shameful or embarrassing position to be in. And, as I’ve recently learned, we have options if we aren’t afraid to pursue them. When that job finished, I moved to New York for graduate school and deferred my loans while studying for my master’s degree in education. I decided that I didn’t want to be a teacher anymore. We all have our reasons for being in this situation. After graduation, I spent a few years teaching English abroad and paid my student loans every month without fail.I knew that the minute I earned more money, I’d start making the monthly payments again, so what was the point in dealing with all that bureaucracy? My creditors would send bills each month, and I would throw the envelopes away without opening them.Not paying my loans didn’t seem to have any effect on my life at that exact moment. I worried that the collection agents would berate me for being so irresponsible.No more instant ramen dinners, Forever 21 jeans and boxed hair dye for me. I used my newfound wealth to go on a long-deferred vacation, to buy a new mattress, to try that amazing restaurant I couldn’t afford to visit before.
For the first time in my adult life, I felt more or less financially comfortable, and I wasn’t willing to go back to scrimping and saving.
I looked into becoming a dominatrix at foot fetish parties.
I tried out for the game show “Who Wants to be a Millionaire.” I finally found a full-time 9-to-5 job with benefits, although the salary was just about what I made waiting tables.
A Direct Consolidation Loan may help make payments more manageable by combining several federal student loans into one loan with one monthly payment.
You may apply for a Direct Consolidation Loan offered by the U. Department of Education and choose a servicer, like HESC/Edfinancial Services, and a repayment plan, such as an Income-Driven Repayment (IDR) Plan.