Consolidate consolidating consolidations loan loan student student
Student loan refinancing: Refinancing is when a student loan lender buys out your existing loans and gives you a single new loan with a potentially lower interest rate.So if you feel like your interest rate is too high, refinancing could help.Refinancing doesn’t guarantee lower payments, but it could help you get a lower interest rate and enable you to pay off your loan faster.
Paying on time, over time, can help you build — or maintain — good credit.
But by opting for a fixed-rate loan, you might be passing up the chance to start out making lower monthly payments.
Variable rates can either work for you or against you.
By increasing your loan repayment period, you’ll have more payments to make and will end up paying more in interest.
There are no prepayment penalties with a Direct consolidation loan, so feel free to pay more when you have the extra cash — it’ll help you save on interest. According to the Education Department, federal loans eligible for a Direct consolidation loan include: Subsidized and unsubsidized Direct loans, subsidized and unsubsidized Stafford loans, Direct PLUS loans, PLUS loans from the Federal Family Education Loan (FFEL) Program, Supplemental Loans for Students (SLS), Perkins loans, Health Education Assistance Loans (HEAL), federal nursing loans and some existing consolidation loans.
During tough economic times, the Federal Reserve and other central banks can lower interest rates.