Tag Archives: StudentLoanDebtMyths

Five Common Student Loan Debt Myths You Should Watch Out For

If you have student loan debt and have been researching options to mitigate or get rid of it, don’t let these common student loan debt myths fool you: Debunking Common Student Loan Debt Myths Myth 1: Student Loan Consolidation Will Lower My Interest Rate Consolidating your loans will not likely result in a lower interest rate. A Federal Direct Consolidation Loan will apply a fixed, or stable interest rate to your loan, so you will have the same interest rate for the entirety of your loan. Your new interest rate will be a weighted average of the interest rates on your previous loans. Myth 2: I Can Simply Stop Paying My Student Loans When They Become Too Burdensome No. Unfortunately, this statement is not true. The consequences of stopping your loan payments depend on the type of loan you have. If your loan becomes classified as default or sent to…
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