Consolidating studen loans
In doing so, you’d lose your federal student loan benefits, so be sure you won’t use them before consolidating.
You may also be eligible for better loan terms if you refinance.
,000 FEDERAL LOANS Fifteen thousand dollars in subsidized loans SUBSIDIZED, ,000 PRINCIPAL at a three point five percent interest rate, @3.5% INTEREST and then two different unsubsidized loans: UNSUBSIDIZED a loan of twenty thousand dollars ,000 PRINCIPAL with a four percent interest rate, @4% INTEREST and a loan of fifteen thousand dollars ,000 PRINCIPAL with a five percent interest rate.
@5% INTEREST Now as you can see, BILL keeping track of these loans might get complicated— especially if you’re making payments to different loan servicers.
In this scenario, most students take out multiple loans from different lending institutions.
STUDENT LOAN And you can often get a lower monthly payment 0, 10 YEARS, PRINCIPAL, INTEREST because you will have a longer repayment period— 0, 25 YEARS so there are some trade-offs to keep in mind.Additionally, there’s a good chance you used a cosigner on your original loans.The combined credit score of yourself and cosigner likely improved your chances of being approved for a loan and with a better interest rate.Your credit score is used to determine credit worthiness down the road when you need it most such as buying a car or home.Consolidating your loans will leave you with one bill to stay on top of.