Consolidating personal student loans
All of this is great - the cherry on top for me is the ability to make a bi-weekly payment as opposed to a monthly one.I had the opportunity to first talk to a representative before I pulled the trigger and she was very helpful to provide me all the necessary information.By increasing your loan repayment period, you’ll have more payments to make and will end up paying more in interest.There are no prepayment penalties with a Direct consolidation loan, so feel free to pay more when you have the extra cash — it’ll help you save on interest. According to the Education Department, federal loans eligible for a Direct consolidation loan include: Subsidized and unsubsidized Direct loans, subsidized and unsubsidized Stafford loans, Direct PLUS loans, PLUS loans from the Federal Family Education Loan (FFEL) Program, Supplemental Loans for Students (SLS), Perkins loans, Health Education Assistance Loans (HEAL), federal nursing loans and some existing consolidation loans.You can see how your student loans factor into your credit standing by getting Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser.Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser.
In doing so, I was able to hack off 3 years of the life of my loan and I will save over ,000 in interest. Definitely recommend Earnest to anyone that is looking to better their financial future.A Direct consolidation loan has a fixed interest rate.The loan rate you will pay is based on the weighted average of the interest rates on the federal loans that you consolidate, rounded up to the nearest one-eighth of 1%.Refinancing student loans, on the other hand, is a step beyond consolidation.When you refinance multiple loans, the lender will evaluate your current financial profile to provide a rate that reflects your financial progress since you originally took out the loans. I was paying 10.5% variable interest on my student loans - by variable I mean only getting variably higher every 6 months. I shopped around a little bit and Earnest gave me the best options to choose from.Failing to make , as well as result in late-payment fees, which is why it’s so important you keep up with your payments until your consolidation loan has been finalized.