Disadvantages of Loan Consolidation

While there are many advantages for a student or school loan, remember that there are always a few pitfalls. Here are a few listed below:

• The student loan will take longer to pay off.

• Some loans when consolidated have a higher interest rate. Avoid this.

• Some consolidation companies will push other products, like insurance for the loan etc.

• Be careful if the loan is secured against your home, as it will be at risk if the payments are not kept up.