Best rates for consolidating private student loans
The interest rate is primarily determined by the lender’s evaluation of the borrower’s credit history.
The following table illustrates how a weighted average works.
In this example, there are three students that each have three loans.
Student loan consolidation or refinancing can be a great tool to use for those looking to save on, or simplify, their monthly payments, but going that route can also have serious consequences if not approached carefully – there are even student loan consolidations scams to be aware of.
That’s why we created this guide – to give borrowers a useful resource that empowers them to choose if student loan consolidation is right for them and which type may best suit their needs.
In short, the term “consolidation” is used to describe the process of combining multiple loans into a single loan while the term “refinancing” is used to describe the process of using a more advantageous loan to repay an older loan.
While refinancing is often used in other realms of finance (like mortgages) to describe repaying a single older loan with a new loan, consolidating with a private loan technically includes refinancing as well since the term and interest rate of the new loan are different from the old loans.
The basics of federal and private consolidation loans are outlined below.
How Federal Consolidation Loans Work Borrowers can combine multiple (at least two or more) federal loans into a single Direct Consolidation Loan (this is the only federal consolidation loan available).
The last section is dedicated to identifying the best private consolidation loans for those with a few different financial profiles.
There are two types of consolidation loans: federal and private, and they each come with distinct advantages and drawbacks.
The new Direct Consolidation Loan provides a single fixed interest rate that is equal to the weighted average of all the loans being consolidated, and the interest rate is rounded up to the nearest eighth of a percent (0.123%).Tags: Adult Dating, affair dating, sex dating