Consolidating student loans 2016
This usually, depends on the rate the borrower got when they first took out their loans and the current interest rates offered for refinancing student loans.
You can apply directly online for federal student loan consolidation here or learn more at our federal consolidation page before you begin. Only direct federal student loans can be consolidated under this program. You are typically able to consolidate after you graduate, leave school, or fall below half-time enrollment. Federal consolidation does lower your interest rate, it simply takes a weighted-average rate of the loans you already have.Because federal consolidation doesn’t change your rate, if you are a highly creditworthy borrower, you may want to consider private consolidation or refinancing.This article will lead you through these three steps in a very simple and straightforward way so that you have all the answers you need to finally take action! Understanding Federal vs Private Loan Consolidation Both types of consolidations can lower your payments and reduce the headache of having to keep track of multiple student loans (which can lessen the risk of accidental default), but the similarities usually stop there…In broad terms, federal student loan consolidation can help create payment flexibility and forgiveness options (provided the borrower enrolls in the correct program) while private student loan consolidation is typically done to get a lower interest rate, thereby lowering your payments (and the total amount paid) as a result.People usually consolidate or refinance their student loans to lower and/or simplify their payments.
Student loan consolidation is the process of combining some or all of your student loans into one new loan.