Reconsolidating a student loan
Essentially what happens when you consolidate BANK is that all of your original loans are paid off by your lender and replaced with a single new loan with new terms.
STUDENT LOAN And you can often get a lower monthly payment 0, 10 YEARS, PRINCIPAL, INTEREST because you will have a longer repayment period— 0, 25 YEARS so there are some trade-offs to keep in mind.
Both of those tactics typically result in a lower monthly payment.
When you are juggling a bunch of different student loans, that can be aggravating and time-consuming.
So that makes it an ideal solution if you have a student loan with an interest rate or monthly payment that is too high.
Reducing the interest rate on an expensive loan can potentially save you thousands or even tens of thousands of dollars over the life of the loan.
Rather than endure all of that hassle, why not just [email protected]% INTEREST In this case, that’s four point two five [email protected]% INTEREST Now, entering your loan information into a loan consolidation calculator, you’ll find that consolidating your loans CONSOLIDATED LOAN REPAYMENT PLAN gives you a new repayment period, ,000 PRINCIPAL, 0, 25 YEARS which is figured based on the amount you owe– the more you owe, the longer this repayment period will be.To answer the question of which is best for you – a refinance or a consolidation loan – it helps to first understand the primary benefits of each and the main difference between refinancing and consolidating student loans. When you refinance a student loan, you take out a brand new loan.At the time the new loan is funded the entire balance of your old loan is paid off by the new one, leaving you still owing essentially the same amount of money – but with a new interest rate and different repayment terms and conditions.