Consolidating private education loans lance bass dating who
Student loan consolidation is a process through which you take out a new loan, which is then used to pay off your other existing student loans.
Instead of having multiple loans and loan payments, you have only one.
Therefore, even though your interest rate is the same or lower, you'll likely end up paying more interest.
You should be wary if a private lender promises to dramatically lower your interest rate by consolidating your federal student loans.
If you have private student loans at differing variable rates of interest, you may be able to consolidate and get one new loan with a fixed rate of interest—a good move if rates have dropped significantly since you were in school.
That's because you'll start the loan repayment clock again and it will probably be for a longer time.
While you do not need to meet any minimum for combining debt under the federal Direct Consolidation Loan program, private lenders and loan companies tend to demand a minimum loan balance.
So overall you'll be paying about the same or perhaps just slightly more for your new, consolidated loan.
Marisa is paying 3.6% on a ,500 Stafford loan and 6.8% on a ,500 Stafford loan.
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Be sure to compare costs and interest rates especially.
This is one reason that, if you have both types of loans, you may want to consolidate them separately (see below).