Consolidating student loans through bank
Certain public service workers may qualify for loan forgiveness in just 10 years, tax-free.
Extending your payback period can be tempting, since it will reduce your monthly payment.
There are two methods for combining several student loans into one: federal consolidation and private consolidation, which is also known as refinancing.
If you're eligible for a lower rate than you currently pay, you could save a significant amount on interest, making it an especially appealing option for borrowers with high interest private loans.
Before taking the plunge to consolidate and refinance student loans with a private lender, consider the following: Your credit score matters: Those with high credit scores will get the lowest interest rates on a refinance loan.
Refinancing has the added benefit of reducing the cost of your loans if you qualify for a lower interest rate or monthly payment.
Be sure to weigh the tradeoffs before refinancing, though, especially if you include federal loans in the bundle.
But variable rates are just that: variable, which means they can go up or down depending on economic conditions.