Student Loan Consolidation Lowdown

Is your financial aid expert trying to convince you that private student loans are the logical alternative to federal aid in affording higher education? There is probably one thing s/he’s forgotten to tell you — that these private alternatives can be more damaging to borrowers than beneficial if used as a substitution to federal aid rather than a supplement. Youngmoney.com reports:

Private student loan holders forego other vital benefits afforded federal loan holders. For instance, if a federal student loan holder becomes disabled or deceased, the loans are forgiven making repayment unnecessary. Private loan holders’ heirs would have to repay the loans in full from the deceased’s estate.

Read more: Private Student Loans: Pros and Cons<

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