Consolidating previously consolidated student loans questions to ask women on a dating website

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Given that consolidation won’t improve your interest rate, why should you consider consolidating your federal student loans? Here are three of the biggest reasons to consider consolidating your federal student loans.

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In fact, it’s likely that your interest rate will increase by just a tiny bit.

When you consolidate, the interest rate of your new loan is the weighted average of all of the loans included in the consolidation, rounded up to the nearest ? What that means is that at best you’ll end up with the same combined interest rate that you had before, and at worst your interest rate will increase by about 0.125%.

And keep in mind that you can consolidate a single loan all on its own, so you don’t need multiple FFEL loans to take advantage of this.

If you wouldn’t otherwise be eligible for those repayment plans, or if you already only have Direct Loans, then consolidation won’t help you here.

You can use the following calculator to see what your interest rate would be after consolidation: Fin Aid Loan Consolidation Calculator The bottom line, though, is that student loan consolidation is NOT a route to a better interest rate.

You need to refinance if that’s what you’re after, and we’ll talk more about that below.

Refinancing, on the other hand, is done by private lenders. We’ll get into the details below, but the primary reason to consolidate your federal student loans is to qualify for beneficial income-driven repayment plans you wouldn’t otherwise be eligible for.

And the major downside is simply that consolidating won’t get you a lower interest rate, which is often a big point of confusion.

Lenders often add to the confusion by using the term consolidation when they’re actually talking about refinancing.

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