Re: Student Loans Question
I consolidated my loans a long time ago so the info may have changed but at the time there was no "deal" in consolidating. They simply combined all the loans into one jumbo loan and the interest rate was the average of all the loans. In other words, if one of your loans is at 7% and the other 8%, your consolidated interest rate would be 7.5%. The interest rate at the time was retarded since I could (and did) move the loans to an unsecured credit card for an even lower rate. The banks seemed unable to offer any kind of deal and I assume it's because they are required to consolidate all student loans this way. Your monthly payment will likely be lower, but all that means is you'll be paying more in interest if you only pay the minimums each month.
Advice is standard with student loans as with any other debt. Concentrate on paying off whatever is the highest interest rate first, then work down the list.
|