FAQs about Consolidating Student Loans

If you are considering consolidating student loans, you will undoubtedly have some questions that need to be answered. Here are some of the most frequently asked questions about consolidating student loans.

How Are Interest Rates Determined?

When you have a federal student loan, the government sets the interest rates, and they do not depend on the credit history of borrowers. With a consolidation loan, the interest rate will depend on the market interest rates and your personal credit history. If you have a good credit score, you will be able to get a lower interest rate.

What Payment Options Do I Have?

When it comes to repaying your student loans, you may have a variety of payment options to consider. You will have the standard fixed payment for the life of the loan for one option. You may also be able to choose from a graduated repayment schedule or an income-based repayment plan. These options will provide you with some flexibility when it comes to making your monthly payments over the life of the loan.

Who Offers Consolidation Loans?

There are many different types of lenders that may be willing to offer you a student loan consolidation. You can check with banks, credit unions, student loan lenders and many online lending companies as well.

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