Step one: Know Your aim

Before you combine otherwise re-finance, you should end up being clear regarding the specifications. Are you presently trying to find lower interest rates or do you want so you can make clear the fresh new repayment process? Or will you be aspiring to consolidate multiple financing for the you to definitely the brand new mortgage and that means you have one commission in place of numerous?

Refinancing may improve some or the regards to their loan and relieve your monthly payment. Like, if you expand the size of the borrowed funds to reduce their payment per month, you’ll be able to shell out far more overall attract.

When you yourself have federal student loans, you could consolidate them through the Federal Head Integration Mortgage Program given by the government. The applying allows consumers to mix any of its the government college loans into an individual brand new mortgage. The fresh new repaired rate lies in new weighted mediocre interest rate of your financing getting consolidated, round to another one-8th of a single percent, and cannot meet or exceed 8.25 percent. Continue reading “2: Facts to consider Ahead of Consolidating otherwise Refinancing”