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%.
C."That new loan will have its own interest rate; it will have its own repayment terms; it will have its own terms and conditions," she says.
This can be attractive to borrowers because the consolidation frequently results in longer repayment periods and lower monthly payments.
Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.
One option you have when you begin tackling your student loan debt is to explore loan consolidation.
Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.
Once you're pre-approved, we'll give you all the terms of your loan and ask you to sign a promissory note, so funds can be officially sent to your school.The average college grad leaves school with ,000 worth of debt.But if you switched majors, transferred colleges, or went on to graduate school, you may be among the 19% that owe ,000 and above, or the 5.6% who owe more than 0,000.You’re generally eligible once you graduate, leave school or drop below half-time enrollment.Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.