Consolidating student loans from different lenders
But what is consolidation, what is refinancing, and how do you know which one (if either) is right for you? Here’s a simple overview of the different types of student loan consolidation, how they differ from student loan refinancing, and how to evaluate whether you should do one of these things.This is a somewhat complicated question, especially since these terms are sometimes used interchangeably. Federal loan consolidation Federal loan consolidation is offered by the government and is available for most types of federal loans—no private loans allowed.Check Your Rates Now Borrowers save an average of ,688 when they refinance their student loans using Credible.Check out our student loan refinancing calculator to see how much you could cut your student debt by.Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.
That’s what our Student Loan Smarts series is all about—helping you understand all of your options so you can make decisions that fit with your financial goals. Choosing to consolidate or refinance student loans.
Fixed interest rates don’t change for the life of your loan, so you’ll always know how much you’re expected to pay.
But by opting for a fixed-rate loan, you might be passing up the chance to start out making lower monthly payments.
Should I refinance my student loans with fixed or variable interest rates? How do I consolidate or refinance my student loans? How much can I save by refinancing my student loans?
Student loan refinancing: Refinancing is when a student loan lender buys out your existing loans, and gives you a single new loan with a potentially lower interest rate.