However, our team also researched other institutions and found some good alternatives for people that want to consider all options before they begin the process of refinancing or consolidating student loans. If you’re concerned about lowering your monthly loan payments, consolidation could be a good option for you.
You can find each lender below, along with information on rates, terms, and other key details. But remember, lowering your monthly payments could mean that you end up paying more in interest overall.
Learn more about whether refinancing is right for you.
This is because federal student loans typically have fixed interest rates, which means your rate will remain the same over the life of your loan.
Private student loans usually have variable interest rates, which can change depending on economic conditions.
Fixed interest rates don’t change for the life of your loan, so you’ll always know how much you’re expected to pay.
Student loan consolidation is often dismissed by borrowers because it can be confusing to understand the process of consolidating student loans.
This section will cover the ins and outs of federal student loan consolidation, including the consolidation application process, and the differences between federal student loan consolidation and student loan refinancing.
For borrowers juggling multiple loan payments, federal student loan consolidation can help them lower their monthly payments, by packaging several debts into a single loan.The tables below illustrate an example of how federal loan consolidation can help you manage multiple student loans, by combining them into a single payment.Although it might seem that you are getting a lower interest rate, your new rate is actually the weighted average of your previous interest rates, rounded up to the nearest one-eighth of one percent. People who are working in the public sector or taking advantage of federal debt relief programs such as income-based repayment or public service forgiveness may not want to refinance, as these programs do not transfer to private refinance loans. Consolidating student loans via refinancing is best for people whose financial position - in terms of employment, cash flow, and credit - has improved since they graduated from school.