What is the difference between consolidating and refinancing online dating in polan
As a result, you may wind up paying more interest over the life of the loan.
Loan consolidation can also cause you to lose certain borrower benefits, such as principal rebates or interest rate discounts.
The benefit of refinancing is it gives you the option to look for better interest rates and terms for repayment.
When you apply for your first student loan, you may not have much credit history, so you could end up with a high interest rate or difficult repayment terms.
If your student loans are through the federal government, you must go through government-backed consolidation programs.Refinancing your loan (suggested interlink: page with information about/options to refinance) after you graduate could give you a lower payment amount, making it easier to pay off the total sooner.Image via Flickr by 401(K) 2013 It makes sense to refinance your loan if your interest rate is higher than the current average.Many students don’t know much about refinancing or consolidation, both of which can help you if you’re struggling to make your payment each month.Refinancing your loan means you will take out a new loan to pay off the outstanding amount of debt you have and combine those loans into one.You could save quite a bit of money, especially if you have a lot of outstanding debt after you graduate.In fact, a refinance could save a student as much as ,000.Check out the rates to figure out whether you could save money by refinancing to a loan with a better rate.If you have a steady source of income and a good credit score, you should qualify for refinancing.Consolidating your student loans doesn’t always benefit you from a financial standpoint.When you consolidate, you will likely extend the term since you are increasing the total amount due on a single loan.