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Consolidate
Here are some factors you
should consider
when deciding if consolidation is right for you.
What are the interest rates on your loans? If a Direct
Consolidation Loan offers you a lower rate than your current loans, you
may want to consolidate. Currently, the interest rate for a Direct
Consolidation Loan is based on the weighted average interest rate on the
loans being consolidated, rounded to the next nearest higher one-eighth of
one percent. This rate is fixed for the life of the loan and cannot exceed
8.25 percent.
Are your monthly payments manageable? If you have trouble
meeting your monthly payments, have exhausted your deferment and
forbearance options, and/or want to avoid default, consolidation may help
you.
How much are you willing to pay over the long term? Like a home
mortgage or a car loan, extending the years of repayment increases the
total amount you have to repay.
How many payments do you have left on your loans? If you are
close to paying off your student loans, it may not be worth the effort to
consolidate or extend your payments.
What consolidation loan benefits do your current lenders offer?
Check with the loan holders currently servicing your loans to see if they
can offer terms and repayment plans that meet your needs better than a
Direct Consolidation Loan.
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Equal Housing Opportunity