Consolidating student loans 2016 sestra moja online dating

It’s just better to consider any new private student loan a refinance since the main benefit is the potential for a interest rate, and since consolidation has a specific meaning when it comes to federal student loans.Before we talk about why you SHOULD consider consolidating your student loans, let’s quickly talk about what it WON’T do for you.The biggest misconception out there is that consolidating your student loans will lower your interest rate. After consolidating, your new interest rate is the weighted average of all the loans you chose to consolidate.In other words, your combined interest rate will be exactly the same as it was before.If you borrowed before July 1, 2006, your federal student loans may have a variable interest rate that changes every year.

It’s a tricky question both because there are a lot of variables to consider and because there’s a lot of misinformation out there about exactly what student loan consolidation is and how it can help you.

One of the main points of confusion is that the word consolidation is often used to mean EITHER consolidation OR refinancing.

But those are two very different things with very different pros and cons.

The catch is that only certain types of federal student loans qualify for these income-driven repayment plans.

Before 2010, federal student loans used to be given out in two different ways.

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