Rates for consolidating student loans
You typically need a credit score at least in the mid-600s to qualify, and rates range from around 2% to more than 9%.When you consolidate multiple student loans or refinance a single student loan, you may receive a lower monthly payment with a reduced interest rate or an extended repayment term.The tool shows you how much you’d pay per month on the various plans.If you choose an income-driven plan, you’ll be asked to provide income information on the application by granting access to your IRS tax information.These processes are often confused, but they’re very different.Here’s how: » SIGN UP: Get a free plan to ditch your debt Federal student loan consolidation basics How to consolidate federal student loans Student loan refinancing basics Compare student loan refinance lenders When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.
If you’re a parent with PLUS loans and you also have other federal student loans, you may want to consolidate your PLUS loans in a separate consolidation loan; consolidating them with your other federal loans will make that consolidation loan ineligible for all income-driven repayment plans except income-contingent repayment.
If you have Perkins loans, think twice before consolidating them; you’ll lose access to Perkins loan cancellation if you do.
You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.