By now you should know the basics behind student loan consolidation and refinancing.Now, we would like to present unbiased descriptions of the 11 major student loan consolidation companies.The eligible loans listed on the application are paid off by the consolidation loan.The application may be completed online, on paper, or over the phone (restrictions apply).However, only payments you make on the new Consolidation Loan will count toward the 120-month payment requirement for PSLF.
Keeping track of that many payments is complicated and part of the reason that 8 million Americans have defaulted on over 0 billion in student loans That is why student loan consolidation appears as such an attractive solution, but there are things you should know as you consider this approach. Using student loans to pay for could cost you a whole lot more.The average college graduate in 2016, who took out student loans, owes ,172, a 6% increase from 2015.There are no fees, no credit checks, and no pre-payment penalities on a federal student consolidation loan.
The interest rate for a federal consolidation loan will be a fixed rate, which is determined by the weighted average of the interest rates on the loan(s) being consolidated, rounded to the nearest higher one-eighth of one percent.
Your new loan typically has a lower interest rate, saving you money, or a lower monthly payment, making repayment more manageable.