Is consolidating student loans good for credit score Websexcams video
There are both benefits and drawbacks to consolidating your loans, which we’ll discuss in this article.
If like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.
But it’s only for federal loans, and it won’t cut your interest rate.
Consider federal consolidation if you: When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
The government offers plans that cut payments to 10% or 15% of “discretionary” income and offer forgiveness on the remaining balance after 20 or 25 years. If you have a large loan balance and a low income, income-driven repayment is probably your best option for the lowest monthly bill.
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