Start Who to contact about consolidating student loans

Who to contact about consolidating student loans

By doing so, you may be able to reduce your monthly payment and cost of the entire loan with a lower interest rate or shorter payback term. Some private lenders also consolidate federal student loans, however you would be losing the benefits of your federal loans in the process.

Let’s say you have fifty thousand dollars in federal loans.

$50,000 FEDERAL LOANS Fifteen thousand dollars in subsidized loans SUBSIDIZED, $15,000 PRINCIPAL at a three point five percent interest rate, @3.5% INTEREST and then two different unsubsidized loans: UNSUBSIDIZED a loan of twenty thousand dollars $20,000 PRINCIPAL with a four percent interest rate, @4% INTEREST and a loan of fifteen thousand dollars $15,000 PRINCIPAL with a five percent interest rate.

STUDENT LOAN And you can often get a lower monthly payment 0, 10 YEARS, PRINCIPAL, INTEREST because you will have a longer repayment period— 0, 25 YEARS so there are some trade-offs to keep in mind.