Consolidating school loans tips
So instead of making multiple monthly loan payments, you will only have to make one or two payments.If you are tight on money and cannot make monthly payments, you can consider consolidating your loans.
You cannot consolidate loans until after you graduate. Getting a lower interest rate is one of the top reasons to consolidate.And while you’re at it, check out So Fi’s new Student Loan Debt Navigator tool to assess your student loan repayment options. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.This is particularly true for grad school borrowers who use unsubsidized Direct loans and Graduate PLUS loans to finance their education.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.These are clearly great programs for people who choose careers in public service or education, but if that’s not you, they won’t do you any good.Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.
Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.
The repayment period of government medical school loans (Perkins and Stafford) is 10 years.
The repayment period of a consolidated government loan is 30 years.
So if your credit score improved compared to when you first got the private loan, there is a good possibility the lender will give you a lower interest rate.
If you have multiple loans, after consolidating, you will have only one or two loans.
Therefore, the monthly payments for the consolidated loan would be lower.