As student loan borrowers are faced with record levels of debt, many are trying to find new creative solutions to help pay it off. Consolidating their student loan debt with their mortgage is one of the options that are available out there. However, this is probably one of the harder solutions to pull off, and it comes with its own difficulties that make it too risky for a homeowner with student loan debt. This is what you should know when considering this debt consolidating strategy.

Reducing Your Interest Rate

One of the benefits of rolling your student loan debt into your mortgage is that you could potentially reduce the interest you are paying. Over time, this could lead to greater savings when compared to those with unsubsidized federal loans. But you should keep in mind how treacherous this ground may be according to Sally Greenberg, executive director of National Consumers League. She said: “I would worry that there would be something buried in the fine print or some arrangement which ends up costing you a lot more than just working to pay off your student loan separate from your mortgage.” As such, if you are considering this path, you should consult a professional that can help you crunch the numbers to see if it makes financial sense.

What You Would Be Risking

If you were to consolidate your debt with your mortgage, you would be giving up certain protections. If you have federal student loans, the biggest benefit you would be forfeiting would be the option for deferment or forbearance. Moreover, if you were looking to roll your debt into a federal loan forgiveness program, then you would also give up that option if you consolidated.

Although you may be reducing your interest rate on your student loans by consolidating, you are in fact increasing how much you have to pay on your mortgage. By expanding the debt, you have on your home, you are reducing the amount of equity you have in your home. If the markets go sideways, and the value of your home goes down, this could lead you to have negative equity in your home.

This can affect your mobility to move, for the debt would need to be paid off before you can sell your home. If you do not intend to leave where you are currently living, then this may not mean much. But if you are indeed looking for new opportunities elsewhere in the state you are living in or elsewhere in the country, then this is something that you could potentially be giving up.

Every situation is going to be different. Now that you have a good idea of what sort of risk may come with consolidating your student loan debt with your mortgage, you should consult a professional. They can help you run the numbers and outline for you if it is really the best option available to you when considering consolidation.