Start Consolidating student debt

Consolidating student debt

Consolidation loans repay old loans with a brand new loan that has its own unique terms and conditions.

A weighted average means that the loans with a higher balance influence the interest rate more than loans with a smaller balance – the overall impact of each old loan on the new interest rate is proportional to the comparative balance of that loan.

Because the interest rate is a weighted average and rounded up, borrowers won’t ever save money on interest by opting for a federal consolidation loan unless the loans are pre-2006 and have a variable interest rate.

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Make sure that you check out our guide on How To Consolidate Your Student Loans The Right Way so that you don't fall victim to any scams, pay for services you don't need, or accidentally combine Federal and private student loans.

Student loan debt is a grave concern in modern America.

The picture painted by these statistics is clear: many borrowers are in over their heads with student loan debt and are looking for relief.

Student loan consolidation or refinancing can be a great tool to use for those looking to save on, or simplify, their monthly payments, but going that route can also have serious consequences if not approached carefully – there are even student loan consolidations scams to be aware of.

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.

We start by discussing the basics of student loan consolidation and refinancing, and comparing the benefits and drawbacks of federal and private consolidation loans.

This gives the company legal rights to act on your behalf with your student loan companies. This site gives you a free saving estimate of what you could save by consolidating and refinancing your student loans in 30 seconds.