Consolidating student loans before 7 1

11 Nov

The interest rate is primarily determined by the lender’s evaluation of the borrower’s credit history.However, some lenders also factor in the borrower’s current financial and professional circumstances.Some lenders require that the borrower’s debt-to-income ratio be below a certain threshold.Many lenders also factor in a borrower’s employment stability and prospects – they may even have minimum annual income requirements.Only loans that are in repayment or in the grace period are eligible for consolidation, and a Direct Consolidation Loan must include at least one Direct or FFEL Program Loan.Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income-driven repayment plan (where the payments are based on the income of the borrower).We start by discussing the basics of student loan consolidation and refinancing, and comparing the benefits and drawbacks of federal and private consolidation loans.

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That’s why we created this guide – to give borrowers a useful resource that empowers them to choose if student loan consolidation is right for them and which type may best suit their needs.

Additionally, certain lenders only offer loans to those who have graduated or have completed a specific type of degree.

Federal and private consolidation loans both have unique advantages and drawbacks – not one option is right for everyone.

Getting a federal consolidation loan isn’t usually considered as “refinancing” since the interest rate of the new loan is equal to the weighted average of the loans being consolidated.

With a private consolidation loan, a private lender writes a new loan that pays off the old loans.