Consolidating private student loans into federal
There are other excellent resources if you are planning for college and thinking about how to pay for it.A good place to start is the Consumer Financial Protection Bureau’s online tool to help you compare financial aid offers.You will need your loan records and account statements.
In addition, many schools have adopted a standard college shopping sheet.
Consolidation makes your student loans more manageable and easier to track by combining payments into one lower monthly bill.
This will decrease the chances of accidentally missing a payment, and the lower payment will help you budget month-to-month.
The Direct Consolidation Loan program is the right choice if your goal is to simplify the process for repaying federal loans and keep your options open for the many repayment plans available for federal loans. If you’re using private lenders for student loan consolidation, there is a chance you could get a better interest rate and possibly lower monthly payments. That’s because federal loan rates are so low – fixed rates of 4.45% for undergraduates, 6% for graduates in 2017-2018 – that it’s difficult for private lenders to beat the rates and make a profit.
Still, some companies, like So Fi and Lend Key, have found a way to offer students a competitive rate and a variety of repayment conditions.