Consolidating loans with different interest rates
You can only consolidate federal, not private, student loans through this program.
(Note: You cannot consolidate federal and private student loans together through the federal government, either.) You can consolidate an existing Direct Consolidation Loan so long as you have a new eligible loan with which it can be consolidated.
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The most obvious advantage to consolidating your loans is the fact that you can have a single monthly payment.
Here's the rundown you need to determine whether student loan refinancing and consolidation is right for you.
First, what does consolidating student loans really mean?
Having to keep track of when your payments are due, how much interest you have to pay (if you have a variable interest rate), and also worrying about what will happen to your credit score if you have a late payment and have to deal with creditors can be very stressful.
When you’re struggling to keep up with the repayments on a number of different debts, it can be incredibly hard to stay on top of them all.
Missing payments on a credit or store card bill, or a bill that comes out of the blue can have a massive impact on both your day-to-day finances and credit rating.
* The Annual Percentage Rate (APR) is different from the actual interest rate because the APR considers fees and reflects the cost of your loan as a yearly rate.
The APR calculation assumes a loan of ,000, a fixed interest rate of 5.83% or variable interest rate of 3.75%, a loan fee of 3.75% and a 10-year repayment term.