dating and courtship book - Consolidating fixed loans

If you're wondering what you need to know about consolidating student loans, find answers to the questions you have before consolidating in this guide from Citizens Bank.

As a borrower, you might have questions about how the consolidation process works.

The interest rate on a consolidation loan is between the highest and lowest interest rates of the loans being consolidated.

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If your credit score or financial situation hasn't changed much since you first applied for loans, you may not see much of a difference in your quoted rates.

However, if you have a steady income, have made payments on student loan and other debts, or want to switch from a fixed to variable rate, consolidation may be beneficial for you.

If you took out multiple student loans in undergraduate or graduate school, they may all have different balances and interest rates.

Managing multiple due dates and lenders can seem complicated; however, many graduates consolidate and refinance their student loans in order to simplify monthly payments and potentially qualify for better rates.

Review the consolidation eligibility criteria on the federal student loan website to learn more.

Before consolidating student loans, it's important to know what benefits you will receive from consolidation.Consolidating your federal loans through the government will have different borrower requirements.For example, you may need to identify the types of federal loans you have and their repayment statuses.If you took out student loans each year of college, it's likely that some rates are higher than others.Plus, if your credit score has improved, you may be eligible for better rates.Consolidating your loans could allow you to receive a new, more competitive rate, reducing the overall amount you'll pay in interest.

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