Monday, 25 January 2016

student consolidation loans

                        student consolidation loans

What is a Direct Consolidation Loan?

  • A government program that allows you to combine multiple federal education loans into a single loan.
  • The resulting interest rate is a weighted average of your prior loan rates.
  • If your monthly payment decreases, it’s likely the result of lengthening the term, which can mean paying more interest over time.
  • Because the interest rate is not reduced, federal loan consolidation is generally not a money-saving option.

What is Student Loan Refinancing?

  • SoFi will consolidate and refinance both federal and private student loans.
  • When a private lender consolidates your student loans, what they are really doing is refinancing your loans.
  • Through private student loan consolidation, you will receive new (hopefully lower) interest rate, based on your current financial picture.
  • If you have good credit and a strong financial picture, you could get a lower interest rate and see substantial savings through refinancing.

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