How helpful are Student Debt Consolidation Loans?
Student Debt Consolidation Loans often are a mechanism to sum up multiple unsecured loans into a single unsecured loan, usually with fixed interest rate. These loans, by virtue of their being unsecured have a slightly higher interest rate and are not preferable if the student has already repaid major chunks of the loans. From a lender’s perspective, Student Debt Consolidation Loans could prove to be risky as they sum up the risk of default on each of the individual loans. Unlike private sector debt consolidation these loans do not incur any fees. The interest rates are very low, and based for example on the 91 days T bill rate which is among the lowest.