Consolidating federal graduate student loans dating whore
Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.
When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.
Many people pay hundreds of dollars each month on college loan repayments.
So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.
Additionally, you’ll get a new loan term ranging from 10 to 30 years.
But, as Mark Kantrowitz warns on USA TODAY, “variable rates have nowhere to go but up.” If you sign up for that low, low rate now, you risk committing yourself to rising rates for years to come. Typical student loan repayment terms range from 5 to 20 years.
By extending the repayment term, you can significantly reduce the amount of money you’re required to pay each month.
At a time when the economy is still in recovery and finding a well-paying job is easier said than done, the results of this debt could be devastating.