Consolidating federal loans with private lender Xxx video chat melbourne
Definition: To refinance private student loans means to restructure student loan debt, usually at a lower rate and with an extended repayment term. Borrowers can refinance both private and federal student loans.
To qualify, you must have a strong credit profile and employment history, or proof of income.
As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.
You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.
These include: term extension, Income-Based Repayment (IBR), loan forgiveness programs, and the Federal Direct Consolidation Program. While this will lower your monthly payment, the extension of your term will also increase the amount of interest you pay over the life of the loan.
You can view the various federal repayment options here (
However, private lenders are increasingly offering lower rates than the federal government for high credit-quality graduate students.
So if you're in that position, should you take advantage of it?
We'll explain the difference here to help you decide which is right for you.
Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.
When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.
If you have private student loans, it means that your loans were not backed by the government.
In other words, your loans were sponsored and issued entirely by a private lender.