With the arrangement, you can get savings from the reduced rate of interest of the loan. (debtfirms.com)
The payment can only go towards interest of all loans in the account and then to the principle, essentially making it harder to reduce the principle earlier. (thecollegeinvestor.com)
However, this should be done with caution because the rates and interests of loans without credit check are also relatively higher than traditional loans. (nation21loans.com)