2) consolidation loan interest rates are fixed at the rounded weighted avg of your variable rate loans.
Federal Student Loans Consolidation First and foremost, opt for direct student loan consolidation i.e.the consolidation of your federal loans like Stafford Loan.Do you feel like your life is on hold because you’re trapped by all your debt payments? Consolidating your debt could be the answer you’re looking for.It can help lower your monthly payments and get you out of debt faster so you can be in the driver’s seat of your own finances.As with the Stafford Loans, there are both Direct and FFEL consolidation programs.
To a college grad swamped with multiple student loans that have come due, loan consolidation is an enticing option.You may have already paid part of your loan payments during your time at college, or you may have deferred your loan.In any case, you still have outstanding debt on your shoulders.Here are some frequently asked questions and answers that may help determine if it's the right move for you.Want to simplify your life with one monthly payment? There is one caveat: federal student loans can be combined into Federal Direct Loan Consolidation but private student loans can't.What's more, some benefits of a federal consolidation loan, such as interest subsidies on deferred loans, are not available on private loans.