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Student Loan Consolidation
Many students over the course of their college career
may end up taking out numerous student loans. If you did the same, after
graduation, consolidating your student loans can help ease the burden of
repayment. By combining all your eligible student loans into a single loan
with a single lender, you'll have just one monthly loan payment. And, you'll
find it easier to manage your debt. Even if you have just one loan you can
also choose to consolidate it.
Who is eligible?
Both parents and students are eligible to consolidate student loans. When
you consolidate your student loans, including Federal Direct Student Loans,
at a lower rate with an extended payment term, you may be able to reduce
your monthly student loan payments by a great degree.
Lowering your monthly payments to fit your budget may help avoid late
payments and free up money to pay for other monthly expenses. Having a lower
payment after you consolidate your loans can make a considerable difference.
What is the Interest Rate for Student
Loan Consolidation?
Consolidation loans have
fixed interest rates that are based on the weighted average of the interest
rates on the loans being consolidated. A lender can provide a new
consolidation loan borrower with the lowest statutory weighted average
interest rate for loans by using the lower of the weighted average of the
interest rates on the loans being consolidated as of July 1 or the date the
lender received the borrower's consolidation loan application. The lender
should apply a consistent method of determining when an application is
received
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