Consolidating federal student loans good idea
» MORE: Student loan payoff calculator If you’re thinking about consolidating, take the time to understand: • Exactly how much you owe. • How much you pay in interest and how long it will take you to pay off your loans at your current rate.
Consolidating with a private refinanced loan could mean that you’ll forfeit those protections and opportunities under the terms of the new loan.It means you can consolidate your private loans — as well as your federal loans — with a private bank, credit union or online lender.Refinancing is an option if you have a credit score in at least the high 600s and a steady income, and are unlikely to need the safeguards of federal loans, such as income-driven repayment and loan forgiveness.When you consolidate, you’ll have only one loan payment to make instead of several.
It’s a good idea if you have an assortment of loans that add up to more than ,000 and you’re having trouble keeping track of them.
If you paid them off over a standard 10-year term, you would pay 3 per month and a total of ,229, including interest.