Federal Consolidation: Help Me Now, Hurt Me Later | 10.09.09
Federal consolidation is kinda like that craz-e-burger which consists of a pound of beef, layers of bacon, globs of cheese, and is sandwiched between a grilled and glazed donut instead of a bun. It may seem like a good idea now, but those 1,500 calories of sugar and saturated fat will make you pay dearly later.
Federal consolidation may seem all sugary sweet my friends, but just remember it’s primary function is to be used as a debt management tool. It’s essentially a quick fix. Consolidation is designed to extend your loan term which then decreases your monthly payment. And while that works for the short term, in the long run you’ll end up paying back more on your loans. For students with hefty balances those additional years could amass into thousands of additional dollars.
Now for those of you just trying to survive I completely understand the mindset of living for today and lowering your monthly bills anyway you can, but you may want to explore other options before you consider federal loan consolidation. I’d hate to see a weak moment on the lips turn into a lifetime on the hips.
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