Many borrowers, when they start college, don’t have great credit, simply because they haven’t built it up enough yet.However, after graduation, many borrowers have much better credit histories, which could qualify you for a lower interest rate on your loan.
That would also reduce the total repayment over the lifetime of the loan – saving the borrower thousands in interest over the same 10 years.The key here is to look at your own repayment situation and see if a lower interest rate is worthwhile.Having multiple loans can be tough to manage – different amounts due, different payment due dates, and a lot more statements to keep track of.By combining your loans into a single loan, you can have one single bill, and you may even be able to lower your payments.You are eligible for any “Direct” repayment plan – and you can setup a timeline from 10 to 30 years to pay back the loan.
This is one of the best ways to lower your current payment on your Federal student loans.
One of the biggest myths when it comes to student loans is whether you can combine your Federal and private student loans. Well, since the middle of 2014, you can actually refinance and consolidate both your Federal and private student loans into a single loan with many private lenders.
Think about it: you just graduated from college and you have a combination of about five different student loans. However, there are times when combining all of your loans (both Federal and private) makes sense, and there are times when it may not.
As you weigh the pros and cons, keep in mind that timing is critical.
With just a few exceptions, you get only one chance to consolidate with the government loan programs.
According to Student Aid.gov, the following types of student loans are eligible for consolidation: • Direct Subsidized Loans • Direct Unsubsidized Loans • Subsidized Federal Stafford Loans • Unsubsidized Federal Stafford Loans • Direct PLUS Loans • PLUS Loans from the FFEL Program • Supplemental Loans for Students (SLS) • Federal Perkins Loans • Federal Nursing Loans • Health Education Assistance Loans • Some previous consolidation loans When you consolidate your Federal student loans, you will get a new loan through the Department of Education, which you can then setup a repayment plan that works for you.