Re consolidating student loans
Additionally, you’ll get a new loan term ranging from 10 to 30 years.
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.
The definition of loan consolidation in a nutshell, is this: One loan, one payment, one lender.
It’s simple, efficient and practical, but there are some negatives, not the least of which is that you could end up paying much more in interest by the time you’re finished.
After 180 days, you will need to apply for a new Direct Consolidation Loan.
Request to Add a Loan to an Existing Federal Direct Consolidation Loan Mail your completed form to: Navient - Department of Education Loan Servicing Attn: Loan Consolidations Originations P. Box 6180 Indianapolis, IN 46206-6180 The interest rate is calculated by the weighted average of the interest rates of the loans consolidated, rounded up to the nearest 0.125 percent.
So, the interest rate on a consolidation loan may be higher than the underlying loans.
However, the interest rate is fixed for the life of the loan.
The good news is that federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.
There is no hard and fast rule about student loan consolidation, other than be sure to do your research.
Consolidation is a great option to make your payments more manageable and maybe even save some money.
Using student loans to pay for could cost you a whole lot more.
The average college graduate in 2016, who took out student loans, owes ,172, a 6% increase from 2015.
Learn more about Direct Consolidation Loans on the Federal Student Aid site Apply now at Student Private student loans are NOT eligible for consolidation into a Direct Consolidation Loan.