Consilidating loans

Federal consolidation combines multiple eligible federal student loans with various repayment schedules into a new federal loan with a single monthly payment.However, if you take longer to repay your loan, you’ll pay more interest over the life of the loan.Refinancing loans through consolidation establishes a new loan with new terms and conditions for the combined balance of your original loans.Consolidation is usually synonymous with federal consolidation, although some private lenders offer consolidation loans as well.Home equity loans or home equity lines of credit are another form of consolidation sought by some people, as the interest on this type of loan is deductible for borrowers taxpayers who itemize their deductions.

Discover Card is serious about safeguarding your personal information online.And while you’re at it, check out So Fi’s new Student Loan Debt Navigator tool to assess your student loan repayment options. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.This is particularly true for grad school borrowers who use unsubsidized Direct loans and Graduate PLUS loans to finance their education.Keep in mind that with a student loan consolidation, you are not saving any money since you are just combining all your student debts into one.Although the terms are often used interchangeably, they are not the same thing.

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