If you are considering refinancing your private education loans, we suggest that you first use the grace period and any other forbearance options you may have on your current private loans before consolidating.The average college grad leaves school with ,000 worth of debt.
Federal student loan consolidation basics How to consolidate federal student loans Benefits of federal consolidation Drawbacks of federal consolidation Private student loan consolidation (student loan refinancing) When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
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, like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.
Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.