Cons of consolidating student loans
So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.
This makes life easier because you only have to make one payment to one servicer for your federal student loans.
Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors.
If you’re considering either federal or private student loan consolidation in order to get a drastically lower loan bill, look further into income-driven repayment instead.
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These processes are often confused, but they’re very different.
You’ll save money if your new loan has a lower interest rate.