Loan consolidating companies
Your interest rate will be the weighted average of all the loans you consolidated (rounded up to the nearest 1/8 percent), and your payment should also equal the sum of all your individual payments.Because remember, student loan consolidation is about convenience in paying multiple loans – nothing else.WARNING: DON'T MAKE THIS STUDENT LOAN CONSOLIDATION MISTAKEThe first big problem that can happen with student loan consolidation is that, since you can consolidate just about every type of Federal student loan, you can accidentally put a loan type in your new consolidate loan that prevents you from having certain repayment plans. You can't transfer it to them, and you can't allow them to consolidate the PLUS loan into their loan.
If you switch to any other repayment plan, you will end up paying more over the life of the loan.This can be hard to manage because you could have 3 different payments to make each month.And if you miss one, you could end up harming your credit score.Student loan consolidation is different from student loan refinancing, but many people use the terms interchangeably.Student Loan Consolidation: This is a free program to combine your Federal student loans into a new Federal student loan.
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Here’s an example: If your payments currently come to a total of $250 across multiple accounts and you apply for a debt consolidation loan, that payment could come down to say $120.