Consolidating private student loans blog
Say, for example, you currently have a balance of ,000 at an average of 7% over 10 years.If you refinance and consolidate at 3% for the same term, you will save ,864.32 and your monthly payment will be .87.First, let’s focus on whether you should consolidate your private student loans.If you have good credit, a stable job and have already made at least a few student loan payments, you are a good candidate for refinancing and consolidating your private student loans, because you can probably get a better interest rate than you are currently paying.Federal student loans interest rates are determined by Congress and are not dependant on your credit score.
You can find this out easily and quickly by using our student loan refinancing calculator.
Your federal student loans are paid off and only the Direct Consolidation Loan remains. These are good reasons to get a Federal Direction Consolidation Loan: Generally, it’s wise to consider consolidating your federal student loans with a private lender if you have a stable job, with a stable income, and you do not believe you can benefit from any of the student loan forgiveness programs.
For borrowers with financial stability as well as a good credit score, often the borrower will save many thousands of dollars by reducing their interest rate with a private student loan lender.
Consolidating your federal student loans with a private lender could save thousands.
Federal student loans offer many more protections to the borrower than private student loans.There is no fee to do this, but your interest rate may be rounded up to the nearest 1/8th of a percent. Most federal student loans may be consolidated, but Direct Parent PLUS Loans cannot be consolidated with federal student loans given to the student.