Consolidating student loans searching
Consolidation is the process by which an approved agency pays off your existing loans and creates a single new loan. After you graduate or are no longer enrolled at least half-time, you may want to consider consolidating your loans to avoid multiple monthly payments.However, consolidation is not always the best option, as you may lose deferment privileges, and federal death and disability benefits, while paying back more in interest over time.
The borrower lists all of the various loans to be consolidated on the application.
There are no fees, no credit checks, and no pre-payment penalities on a federal student consolidation loan.
The interest rate for a federal consolidation loan will be a fixed rate, which is determined by the weighted average of the interest rates on the loan(s) being consolidated, rounded to the nearest higher one-eighth of one percent.
Most of the current deferment and forbearance provisions of Direct student loans are retained after being consolidated.
Specific deferment options include: Repayment terms range from 10 to 30 years, depending on the amount being refinanced.