Consolidating student loan interest rates
If you wish to pursue a private consolidation loan, be sure to fully understand the calculation of interest, terms, and borrower benefits. Students can consolidate their education loans only during the grace period or after the loans enter repayment.
There are no fees to consolidate. Not all borrowers receive the lowest rate.
If you do not specify the repayment terms, you will receive standard ten-year repayment. Benefits As you would guess, Citizens Bank charges no application origination, disbursement, or pre-payment fees.
In addition to requiring your explicit permission, these credit pulls may impact your credit score. And the company even offers an interest rate discount if you choose to make your payments via auto-pay, as reflected in the rates above. Contact your current lenders to get this information. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan.
Hard credit inquiries or hard credit pulls are required for SoFi to be able to issue you a loan. To get the information you need on your loans, look at your most recent statement or look up your loans in the National Student Loan Data System see Resources.
Tips If your federal student loans have fixed interest rates, you will not be able to lower the interest rate by consolidating them. There are, however, a few restrictions on consolidating a consolidation loan. However, you can still consolidate if you would like to make just one monthly payment and receive the option to choose a longer repayment term to lower your payment amount.
Unlike hard credit inquiries, soft credit inquiries or soft credit pulls do not impact your credit score. On-time payments are payments including both interest and principal.
Loans that are in default but with satisfactory repayment arrangements may also be consolidated. It is easier to lower the interest rate on private student loans because federal loans calculate the consolidation interest rate based on the existing rates of the loans you consolidate. Eligibility Requirements You must be a U. We recommend sticking with standard ten-year repayment, because it will save you money.
If someone wants you to pay an upfront fee, chances are that it is an example of an advance fee loan scam. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. For example, you would not be charged any fees for making extra principal payments each month. There are no fees to consolidate your loans.
More importantly, the amount of interest you pay over the lifetime of the loan will be about the same. Both federal and private loans are eligible for refinancing and consolidation through Citizens Bank.
If you anticipate eligibility for Perkins Loan forgiveness cancellation you may withhold the loan s from consolidation. In general, you will need to know the name of each lending company at which you have a private student loan, your account numbers and the balances on your loans. You generally need to know the lending company's name and address, your account number and the approximate amount you owe. You can consolidate a consolidation loan only once.
How to Consolidate Student Loans at a Low Interest Rate
Some lenders offer private consolidation loans for private education loans as well. The federal government lowers your interest rate if you consolidate these during the grace period. Any federal education loan can be consolidated. Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan.