Under these plans, the government extends your repayment term and caps your payments at a percentage of your income.That can help give you more breathing room in your budget.
Plus, if you have debt left over when the repayment term is up, it will be forgiven (but taxed as income). That means the interest and monthly payment can change according to market conditions.
In addition, if you opt to extend your repayment term, you could pay back more in interest over time.
If you want to compare the immediate benefits of consolidating vs.
One way to consolidate your debt is to apply for a federal Direct Consolidation Loan.
With this method, the Direct Consolidation Loan is used to pay off your old debts.