Advantages of consolidating your loans
There are several advantages to consolidating your federal loans:
· Affordability - By consolidating your education loan(s),
you may be able to extend your repayment period which will reduce
your monthly payment. Remember, however, that if you take longer to
repay your loan, you will pay more interest over the life of the
loan. Consolidation loans have a fixed interest rate. If you
currently have a variable interest rate on one or more of your
federal loans, by refinancing when interest rates are low you will
save money over the length of the loan term by avoiding potential
higher interest rates in the future.
· Efficiency - a Consolidation loan allows you to consolidate
one or more federal loans from different lenders. If you are a
student borrower and have a Perkins loan, subsidized and/or
unsubsidized Direct loans, and subsidized and/or unsubsidized
Stafford loans, you can consolidate these into a single
Consolidation loan. You will receive only one monthly bill. There
are no origination fees, and you may consolidate any number of
loans, even just one loan.
· Convenience - By consolidating your education loan(s), you
simplify your loan updating and communication requirements. You will
have only one place to send your monthly payment and only one phone
call or on-line adjustment to make to report a change of address or
phone number, request a deferment or forbearance, or ask a question
about your loan.
· Flexibility - If you consolidate your loan(s), you will
gain financial flexibility. You will be able to choose from several
different repayment plans, and change your repayment plan as your
financial circumstances change. You pick the plan that best fits
your needs.
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