Consolidating plus student loans
If you did borrow money for college, chances are you received a new loan each semester.
It is not unusual to owe money to 8-10 separate lenders, maybe more if you had a combination of private and federal loans.
When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.
So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.
If you had any special benefits like a principal rebate attached to your original loan, you will lose those when you consolidate.
Consolidation is final: you can’t reverse your decision at a later time, so consider your circumstances carefully before deciding.
Keeping track of that many payments is complicated and part of the reason that 8 million Americans have defaulted on over 0 billion in student loans That is why student loan consolidation appears as such an attractive solution, but there are things you should know as you consider this approach.
We offer shorter loan term options, so that you can pay off the loan and be debt free faster.
Using student loans to pay for could cost you a whole lot more.The average college graduate in 2016, who took out student loans, owes ,172, a 6% increase from 2015.That is a sizeable, unwelcome gift to take home from school and it’s important to know how to minimize the damage.The good news is that federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.One of the best places to start looking is the federal Direct Consolidation Loan program.