Best rates consolidating student loans
If you extend your loan terms, you will have a lower monthly payment.
Federal student loan consolidation doesn’t involve a credit check, you may be able to lower your monthly payment and there could be other benefits, such as being eligible for more repayment plans or forgiveness programs.
While both options involve combining multiple loans into one, private loan consolidation is generally referred to as refinancing.
This is because you’ll finance the new student loan based on a variety of factors, including your income, debts, employment and credit.
It’s not difficult to qualify for federal student loan consolidation, but you do have to meet certain criteria.
Most, but not all, federal loans are eligible for the program.
You may be able to save money and lower your monthly payment by refinancing your student loans with an interest rate reduction.
However, when you refinance federal loans, they’ll become private loans and will no longer be eligible for federal programs, including income-driven repayment plans and forgiveness programs.
The lender issues a new loan based on your creditworthiness.When you refinance your loan, you can choose a five-, seven-, 10-, 15- or 20-year term.Common Bond will match your federal loan deferment period if you graduated the same year you apply and your loans are currently in grace period deferment.If you’re using the paper application, you’ll mail the application to the servicer of your choice. You could also choose the Income-Based Repayment Plan, the Pay As You Earn Repayment Plan or Revised Pay As You Earn Repayment Plan as long as your consolidated loan doesn’t include a parent PLUS Loan.With ICR, IBR, PAYE and REPAYE, your monthly payment will be 10 to 20 percent of your annual discretionary income, the difference between your actual income and 100 to 150 percent of the federal poverty guideline for your family size and state.