Consolidating federal student loans good idea
For federal student loans the rate will be a weighted average, as mentioned above.
It’s worth a look if you’re currently in repayment and exploring your options.
Private student loans (and occasionally federal student loans) are consolidated by private lenders and the new interest rate offered will be dependent on your credit score. Check your rate using Ready For Zero's free debt consolidation tool.When you consolidate your student loan debt you essentially combine multiple student loans (usually with various interest rates) into one new loan with a single interest rate.Because of the differing terms and regulations, federal student loans and private student loans aren’t generally consolidated with one another.People have saved thousands by consolidating higher-interest debts using a single, personal loan, this will not negatively impact your credit.Check Your Rate Now Cons to student loan debt consolidation include…To learn more about how to consolidate your federal student loans, you can check out the government website and begin your application here.NOTE: Some links in this article have referral codes that allow us to get paid a small referral fee when we send new users to a partner site.You want to ensure that your new interest rate lowers your overall interest payments.For private student loans, rate you’re offered will be dependent on your credit score.Loss of protections When you consolidate your student loan debt, you may lose some benefits attached to your original federal loan.For federal loans, that means you forfeit and will not be able to reclaim them should you encounter a financial challenge in the future.