Who can i talk to about consolidating student loans
The main reason to consider refinancing is the possibility of getting a lower interest rate.They both have very different pros and cons, and very different situations in which they make sense.But if you have FFEL loans, you can turn them into Direct loans through consolidation and open up the possibility of qualifying for those repayment plans.And you don’t even need more than one loan to do it.For a quick example, let’s assume you have two student loans. The other has a ,000 balance and an 8% interest rate.If you consolidated those loans, you would end up with a single ,000 loan with a 6.75% interest rate.But there are times where refinancing is the right option and we’ll talk about those situations as well.Quick note: Many private lenders will call their loans “consolidation” loans, which adds to the confusion.
Specifically, we’re going to cover the following: By the end of this post, you will know whether consolidating your student loans is a good idea and how you can get started.
With that out of the way, let’s talk about the main reasons why you SHOULD consider consolidating your student loans.
For most people, this would be the main reason to consolidate your student loans.
Actually, it might be slightly higher, since your interest rate will be rounded up to the nearest 1/8%.
Not a huge increase, but a potential increase nonetheless.With respect to student loans, consolidation specifically refers to the Federal Direct Consolidation Loan program, which essentially allows you to turn one or more federal student loans into a different kind of federal student loan.