Low rate for consolidating student loan


12-May-2020 15:56

Instead of making multiple payments to multiple lenders, the borrower only has to pay off the new consolidation loan, says Michelle Pezzulli, vice president of operations for Credit Union Student Choice, a student lending service provider in Washington, D. “That new loan will have its own interest rate; it will have its own repayment terms; it will have its own terms and conditions,” she says.This can be attractive to borrowers because the consolidation frequently results in longer repayment periods and lower monthly payments.

Private loans can typically only be consolidated with other private loans.“If the terms you’re going to get are the not as generous as the terms you already have, consolidation is probably not a good idea,” she says.Regardless of whether consolidating federal or private loans, there is a catch.Those seeking consolidation should also review their repayment options at Student gov, so they’re prepared to pick the proper repayment plan.

Once the application is submitted, the federal government estimates that it takes 60 to 90 days to officially complete the consolidation process.Almost all types of federal loans can be consolidated.