Adult chat rooms in skype - Disadvantages of consolidating student loans

by  |  20-Mar-2016 08:00

Benefits: Consolidating some types of loans, like those from the Federal Family Education Loan Program, makes them eligible for certain benefits.

These can include income-driven repayment, which ties your loan payments to your earnings and forgives your federal loan balance after 20 or 25 years, and Public Service Loan Forgiveness.

If you qualify, you’ll receive immediate, personalized offers from multiple lenders without affecting your credit.

Read on to learn how to apply for federal student loan consolidation or student loan refinancing and how to decide whether one is right for you.

[Skip to refinancing] Only federal student loans are eligible for this type of consolidation.

Interest rates: The interest rate of your consolidated federal student loans will be a weighted average of your previous rates, rounded up to the next 1/8 of 1%.

It won’t be determined by your financial history, as it would be if you refinanced.

Benefits: Depending on the year you first borrowed, you could be paying as much as 6.8% in interest on undergraduate federal loans and 8.5% on graduate PLUS loans. Interest rates offered by lenders through Credible start at 3.5% for a fixed-rate loan.

Community Discussion