Consolidating school loans tips
If you are concerned about your ability to pay back the medical school loans, check out my section for tips on paying off medical school loans.
If you have multiple loans, after consolidating, you will have only one or two loans.There are also a number of federal loan repayment plans that can ease the burden for borrowers facing tough economic times.For example, the government’s Pay As You Earn (PAYE) and Income-Based Repayment (IBR) programs allow borrowers to make reduced monthly payments based on financial hardship.Loan consolidation is combining all your loans into one big loan.You will have two types of medical school loans: government and private. You can consolidate a government loan with another government loan, a private loan with another private loan.Monthly Cost and Total Interest Over 10 Years To give you an example, if you have $240,000 in loans with an interest rate of 6.8% that compounds monthly (but in reality, interest compounds daily so the situation is even worse), for you to finish paying the loan in 10 years, it will cost you more than $2,700 per month.
The total interest you will pay over the life of the loan is $91,000. Monthly Cost and Total Interest Over 30 Years But for the same loan, if you pay it over a course of 30 years, it will cost you almost $1,500 per month. But the total interest over the life of the loan is more than $330,000!!!
offer benefits and protections that do not transfer to private lenders.
This is often the reason that people cite when they say you shouldn’t combine federal and private loans.
Therefore, the monthly payments for the consolidated loan would be lower.
Just keep in mind that you will pay more interest over the life of a loan with a consolidated loan.
Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.