Does consolidating student loans save money

If you have private loans only, or you don’t plan to take advantage of those federal protections, compare refinance lenders to get the lowest possible rate.Strongly consider lenders that offer the most flexibility on payments and multiple options for forbearance.Making payments on time is key to having a good credit rating.

Here are a few things to consider before jumping into it.If you have a variable rate loan, another reason to consolidate might be to nail down a fixed interest rate.With a fixed rate, you know what your interest costs will be, regardless of the movement of the market interest rate that determines whether variable rates rise or fall.But it’s only for federal loans, and it won’t cut your interest rate.Consider federal consolidation if you: If you’re considering either federal or private student loan consolidation in order to get a drastically lower loan bill, look further into income-driven repayment instead.If you have student loan debt, the question of whether to consolidate becomes more complicated.

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