About consolidating student loans
Yet despite the appeal -- and its popularity -- student loan consolidation isn't for everyone.Here are some frequently asked questions and answers that may help determine if it's the right move for you.After you are done, you will know how to refinance and consolidate student loans. You may now have a general idea of how to refinance student loans and how to consolidate student loans, as well as the basics of what each lender offers, but there is much more information you should know before choosing a lender.Below we've ranked the leading student loan refinancing and consolidation companies. There are many different benefits and drawbacks of what each student loan consolidation and refinancing lender offers, and it is important to be aware of all of them.Late payments will remain on your credit report for seven years from when they were first reported.It’s important that you fully understand loan rehabilitation and loan consolidation before making your decision.The key terms for federal consolidation loans do not vary by lender: no application or origination fees are allowed and there are no prepayment penalties.Federal law sets the period of time for paying back the loans and sets a ceiling on the interest rate.
Today, the answer to that question is probably yes!Private consolidation lenders, on the other hand, are not subject to those terms and may include variable rates and any number of fees.What's more, some benefits of a federal consolidation loan, such as interest subsidies on deferred loans, are not available on private loans.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.