Does consolidating student loans save money
This is an avenue which you can use to manage your loans easily because you will be dealing with only one loan and do not have to follow up on several loans with different deadlines and repayment periods. Once you have made a loan request on our website, we will strive to connect you with a lender in our network who will in turn fund your loan.Once we have sent your loan request to the lenders in our network, they will give you feedback if you qualify for the loan or not.Streamlining debts can be a useful way of managing an unyielding financial burden and lowering costs, but it’s not for everyone.Here are a few things to consider before jumping into it.Using proprietary technology, we're able to provide you with a secure and easy, customer-oriented loan service. Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks.There are two major reasons to consider consolidation: to save money by getting a more favorable interest rate and to facilitate making payments on time.Say you’ve been carrying a handful of credit cards with rates in double digits.
Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.
When it comes to consolidation, the types of loans you have matters, but most federal loans, including Stafford, Perkins, Direct Plus and Supplemental loans, can be consolidated with other federal student loans."The interest rate on (federal) consolidation loans is an average of the interest rates on the (federal) loans you're consolidating," says Ken O'Connor, director of student advocacy for Fynanz, a New York City firm providing technology for the private student loan market.
Even if your rates seem high, t he Department of Education puts a cap on consolidation loan rates at 8.25 percent.
If you meet the lender’s requirements, he will give you all the details about the loan rates and repayment periods.
You can choose if you want the loan from the lender.