What to know about consolidating student loans
Types of benefits can include discounts on interest rates for automatic payments made from your bank account and/or paying on time.
However, extending the repayment term, or life of the loan, comes at a cost since you will be paying interest on the new loan for a longer period of time.
You should fully investigate the consolidating loan and know what you're getting into before making this decision.
The rising costs of college facts postulate false intrinsic halfway a underage to apply being a student loan today.
If she were to consolidate those loans, a legitimate lender would calculate her new interest rate using the following formula: (,500 x 3.6%) (,500 x 6.8%) / (,500 ,500) = 5.68% This would be rounded up to 5.75%.
While the overall interest rate on the consolidated loan is less than the 6.8% Marisa was paying on the ,500 loan, it\'s significantly more than the 3.6% she was paying on the ,500 loan.