Consolidating federal student loans information

Rated 4.4/5 based on 850 customer reviews

Student loan consolidation or refinancing can be a great tool to use for those looking to save on, or simplify, their monthly payments, but going that route can also have serious consequences if not approached carefully – there are even student loan consolidations scams to be aware of.

That’s why we created this guide – to give borrowers a useful resource that empowers them to choose if student loan consolidation is right for them and which type may best suit their needs.

The new Direct Consolidation Loan provides a single fixed interest rate that is equal to the weighted average of all the loans being consolidated, and the interest rate is rounded up to the nearest eighth of a percent (0.123%).

A weighted average means that the loans with a higher balance influence the interest rate more than loans with a smaller balance – the overall impact of each old loan on the new interest rate is proportional to the comparative balance of that loan.

A federal student loan consolidation calculator provided by US Bank was used to calculate the weighted average.

Borrowers who are out of college or are attending classes less than half-time can consolidate their federal student loans.

In this example, there are three students that each have three loans.All types of federal student loans can be consolidated together except a Direct PLUS Loan that was taken out by a parent to help pay for a child’s education (student PLUS loans can still be consolidated).However, private loans can’t be included in a federal consolidation loan.The basics of federal and private consolidation loans are outlined below.How Federal Consolidation Loans Work Borrowers can combine multiple (at least two or more) federal loans into a single Direct Consolidation Loan (this is the only federal consolidation loan available).

Leave a Reply

  1. oakland university dating 29-Apr-2020 03:40

    Last week she said, “Did I tell you that Allie broke up with Carter Smith?

  2. Vilage datingsex videos 26-May-2020 04:26

    So there began the celebration of their married life.