Consolidating loan student uk
Loan cancellation (also called “discharge”) is the most complete way to deal with a student loan.
Although limited, cancellations for federal loans are required by law.
This section discusses ways to cancel or discharge loans outside of bankruptcy.
In rare cases, it is also possible to discharge student loans through bankruptcy.
In some cases, you can cancel a loan due to serious problems with the school you attended.
This is not a general cancellation simply because you didn’t like your school.
Instead of having multiple debt payments each month, you’ll only have one.
But if you switched majors, transferred colleges, or went on to graduate school, you may be among the 19% that owe ,000 and above, or the 5.6% who owe more than 0,000.
Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.
You’ll no longer owe the original loans, and since this consolidated loan is new, it will come with a new interest rate, a new payment policy, and new terms and conditions.
There are both benefits and drawbacks to consolidating your loans, which we’ll discuss in this article.