Consolidating a sallie mae student loan

(Rates are set every year on July 1.) The beauty of consolidation is that you lock in one fixed rate that is based on an average of your loans' current rates.That way you no longer worry about paying more when interest rates climb, which is an inherent risk of variable-rate loans such as the Stafford or PLUS.

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Once the new rates take effect July 1, the in-school rate will be 3.46 percent.Still, that doesn't necessarily mean everyone needs to rush out and have their consolidation in place come July.In some situations, it may pay to wait a bit, Chany said.If you want to significantly lower your monthly payments, you often can do so by extending your repayment period well past the 10-year term typical for federal student loans.Doing so, however, means you will pay more in interest in the long run since you will be making payments over a greater length of time.Generally speaking, people consolidate their student loans for one of two reasons: To lower their monthly payments or to save money over time.

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