Does consolidating student loans save money Hot chat direte
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.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
College students can take out new loans each year they're in school, so by the time graduation comes, it's common to have half a dozen, or more, individual loans.
Each of them may have different terms, including interest rates.
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%.