Consolidating personal student loans datingdoublersystem com
Regardless of how the market fluctuates, borrowers will never pay more than 8.25 percent on their consolidation loans.Private loans can typically only be consolidated with other private loans. Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks. Along with gaining a new degree, many graduates will also leave campus with new student loan payments they’ll have to fit into their post-graduate budgets.
Most also have limits on how much you can consolidate.
Consolidating both types of loans excludes borrowers from federal protections.
When eyeing consolidation options for private loans only, Mayotte says borrowers should evaluate the new loan’s hardship protections and repayment terms in addition to the interest rate.
And once consolidated, they usually have variable interest rates, O’Connor says. Consolidating private student loans when interest rates are low (like now) “could potentially save thousands of dollars.” It also means your interest rate can fluctuate higher as the years tick by.
Unlike federal loans, it can be trickier to get your private loans consolidated.