Conslidating student loans
There are plenty of banks out there that can refinance and/or consolidate your student loans, but finding the right bank can be time consuming and frustrating. Students who need assistance covering the cost of their college education often turn to federal or private student loans to pay their tuition and fees.To successfully navigate this often confusing process, you need to understand the pros and cons of refinancing, what to expect from the process, and what programs are offered by top lenders in the industry. Federal student loans come in two types: Direct Subsidized Loans or Direct Unsubsidized Loans. Whom do I contact if I have questions about consolidation?There is no cap on the interest rate of a Direct Consolidation Loan.
You can complete and submit the application online, or you can download and print a paper application from Student for submission by U. The consolidation servicer will be your point of contact for any questions you may have related to your consolidation application.If a borrower decides to go ahead and apply with a specific lender, an online application can be completed and a hard credit check will be run.This will show up as an inquiry on a credit report which can impact a credit score.Refinancing can save you money each month through lower payments, and save you money over the life of the loan through lower interest rates.
Consolidating student loans with different payment amounts, due dates, and interest rates into a new loan with one payment, one amount, and one interest rate can make it easier to stay on top of your student loan obligation without a payment getting lost in the shuffle.
Too many inquiries over a long period of time can lower a credit score, so you need to be certain you want to pursue refinancing and/or consolidating your student loan before completing the application process.