Consolidate consolidating consolidations loan loan student student
If you need lowered payments, you might want to keep your federal loans and enter into a different repayment plan that is better suited to your income level.A private spousal consolidation loan may simplify your life if you and your spouse have a confusing or unfavorable student loan landscape.The Federal Loan Consolidation Program was created in 1986.In 1998, the United States Congress changed the interest rate to the aforementioned fixed rate weighted mean, effective February 1, 1999.By this, I mean you and your spouse: If some or all of these are true, consolidating your loans into a single loan might seem attractive.
A spousal consolidation loan locks you into a financial obligation with your spouse that may be very difficult or costly to get out of, especially if you decide to get divorced.
However, some private lenders will consolidate a married couple’s loans, though the procedure would technically be considered a refinance.
The two loans would be paid off by a single new loan in both your name and your spouse’s name.
Maybe you are desperate to take advantage of a loan forgiveness program that’s impossible to access with a joint loan; maybe you’re getting divorced and the prospect of sharing debt with your ex for years to come is a very unpleasant one.
Whatever the reason, you are in a tricky situation.
If you and your spouse have a loan where one of you co-signed, you can theoretically release a co-signer, but lenders are not always willing to do this.