Consolidating student loans information catherine reitman dating
Only loans that are in repayment or in the grace period are eligible for consolidation, and a Direct Consolidation Loan must include at least one Direct or FFEL Program Loan.
Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income-driven repayment plan (where the payments are based on the income of the borrower).
We start by discussing the basics of student loan consolidation and refinancing, and comparing the benefits and drawbacks of federal and private consolidation loans.
We then detail a step-by-step guide to using and choosing consolidation loans.
Consolidation loans repay old loans with a brand new loan that has its own unique terms and conditions.
Additionally, certain lenders only offer loans to those who have graduated or have completed a specific type of degree.
Federal and private consolidation loans both have unique advantages and drawbacks – not one option is right for everyone.
Getting a federal consolidation loan isn’t usually considered as “refinancing” since the interest rate of the new loan is equal to the weighted average of the loans being consolidated.
With a private consolidation loan, a private lender writes a new loan that pays off the old loans.
A federal student loan consolidation calculator provided by US Bank was used to calculate the weighted average.