Some spend more money on college debt than they pay for groceries, utilities, or in some cases, even rent.
Many people pay hundreds of dollars each month on college loan repayments.
As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.
You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.
At first glance, variable rates may look appealingly low — 2.25 percent or 3.25 percent — compared to fixed-rate loans that ask for 6–7 percent interest.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.Perhaps that’s one reason around 7 million borrowers are in default, according to the Consumer Financial Protection Bureau. Consolidating your student loans can be a great way to ease financial strain — and the stress that goes with it. There are repercussions to refinancing that you should know before you sign on the dotted line.This is often the reason that people cite when they say you shouldn’t combine federal and private loans.