http://studenomics.com/debt-reduction/is-student-loans-consolidation-right-for-you/ Fri, 10 Feb 2012 19:14:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://studenomics.com/debt-reduction/is-student-loans-consolidation-right-for-you/#comment-18159 Jeremy Thu, 31 Dec 2009 17:05:46 +0000 http://studenomics.com/?p=2388#comment-18159 The biggest financial mistakes I have made in my life was consolidating my federal loans. After graduating from law school with nearly 130K in student loans, I consolidated to take advantage of the six month deferral on consolidations. What I didn't know at the time was that an interest deduction opportunity existed for those who did not consolidate--after three years of on-time payments, your interest rate goes to 0% for the life of the loan, assuming on time payments. Instead of moving heaven and earth to pay the loan for three years, and thus take advantage of 0% rate opportunity, I consolidated and locked in the $75K federal loan at 6.5%. You can probably do the math as to how much this mistake will cost me over the 25 year loan. Just a bit of food for thought to educate yourself on all possible options before consolidating. The biggest financial mistakes I have made in my life was consolidating my federal loans. After graduating from law school with nearly 130K in student loans, I consolidated to take advantage of the six month deferral on consolidations. What I didn’t know at the time was that an interest deduction opportunity existed for those who did not consolidate–after three years of on-time payments, your interest rate goes to 0% for the life of the loan, assuming on time payments. Instead of moving heaven and earth to pay the loan for three years, and thus take advantage of 0% rate opportunity, I consolidated and locked in the $75K federal loan at 6.5%. You can probably do the math as to how much this mistake will cost me over the 25 year loan. Just a bit of food for thought to educate yourself on all possible options before consolidating.

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