Adult text chat free no email Consolidating private loans government

Maximum Loan Amount: None Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent.

Currently, the interest rate is fixed for the life of the loan.

Now that you know it’s an option and you understand how it works, you can better assess whether it’s right for you.

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At Earnest, our clients save an average of more than ,000 by refinancing their student loans.

(You can learn more about Earnest calculations in disclaimers available at It’s important to note that when you refinance, you can decide which loans you want to refinance and which, if any, you’re happy to keep at their current terms.

With consolidation, you now have only one bill due each month. If you have a ,000 loan with a 6% interest rate and another ,000 with 5%, and you’re planning to pay them off in 10 years. The calculation works like this: As ,000 is ⅔ of your total loan balance and ,000 is ⅓, you’d multiply each interest rate by that fraction and add the results: (⅔ * 6% ⅓ * 5% = 5.67%).

Consolidating your loans may be a good option if you’re happy with your rates, you are planning to use an income-based repayment program, or refinancing is not the right fit for you at this time.

Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.

Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.We can help you understand the difference between consolidating and refinancing student loans—and figure out what option is best for your future.Consolidating your federal student loans with a Direct Consolidation Loan from the government, for example, involves gathering all your loans under one new loan.You can stretch your term out with a consolidation loan, and that may lower your monthly payment even though you may pay more over time.When refinancing your student loans, you get a new loan with a private lender such as Earnest and pay off your existing loans.And while you’re at it, check out So Fi’s new Student Loan Debt Navigator tool to assess your student loan repayment options. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.