| While in college, most students do not have time | | | | Meanwhile, the interest rate for private |
| to give much thought to how they are going to | | | | consolidated loans is calculated based upon some |
| one day pay for their student loans. Instead, they | | | | standard rate (like the prime rate) and your credit |
| are busy studying, figuring out which major to | | | | score. The rate you are offered will vary from |
| choose, getting a date, or going out and having | | | | lender to lender, so it pays to shop around. |
| fun. | | | | Tips For Getting The Best Rate |
| Reality hits pretty hard on about 2-3 months | | | | For private student loan consolidation, the interest |
| after graduation, however. Soon, the grade period | | | | rate of your new loan could vary quite a bit. Here |
| granted for most types of student loans is set to | | | | are some tips for getting yourself the best |
| expire. The new college grad is now focusing on | | | | college loans rates for consolidation: |
| how to earn a living and build on his or her | | | | 1. Check your credit score: Before contacting a |
| personal life. Then, the harsh reality of college loan | | | | private lender, research your credit score. For |
| repayment hits. | | | | better or worse, your credit score will play a huge |
| The actual payment amounts that the student is | | | | part in the rate you are offered (see above). |
| responsible for making is determined by the loan's | | | | Therefore, knowing your score ahead of time |
| interest rate and agreed-upon repayment period | | | | gives you the power of knowledge to help |
| (which is often 5-15 years). | | | | influence your negotiation. |
| Meanwhile, the complexity of the repayment | | | | 2. Calculate your idea repayment period: Find an |
| process is directly affected by one other thing: if | | | | online loan calculator. Based upon the total amount |
| the student has taken out multiple student loans. | | | | you still owe on your existing college loans and |
| Having multiple loans means that some payments | | | | your current (weighted) average interest rate, |
| are due on the 1st, some on the 20th, etc. This is | | | | plug in different repayment periods (e.g., 10 years, |
| a pain to manage. | | | | 20 years, etc.) and see how they affect your |
| The Benefits Of College Loan Consolidation | | | | payment amount. Caution: while lower monthly |
| If you are a grad who holds multiple college loans, | | | | payments may be just what you need right now, |
| you may be interested in consolidating your loans. | | | | remember that a longer repayment period will |
| Consolidating your loans comes with a number of | | | | result in your loan costing you more in the long |
| benefits. The biggest benefit for most people is | | | | run. |
| the ability to stretch out your repayment period | | | | 3. Research rates with multiple lenders: Compile a |
| over more time, such as going from 10 to 20 (or | | | | list of at least 5-10 private college loan lenders. |
| even 30) years. | | | | You can research them online. Write down the |
| Another benefit is that of simplifying one's life. By | | | | important information about each one, such as |
| consolidating, you only have to make a single | | | | advertised rates, contact information, etc. |
| payment each month and only have to deal with | | | | 4. Apply to at least 5 lenders: Be sure to apply to |
| one lender. | | | | at least 5 of the best lenders. You will be |
| College Loan Rates For Consolidation: How They | | | | tempted to stop once you get your first offer, |
| Are Calculated | | | | but following through and applying with all of them |
| The interest rate for federal consolidated loans is | | | | will greatly increase your chances of getting the |
| calculated as a weighted average of the interest | | | | best-possible offer. |
| rates of your existing loans, rounded up to the | | | | Follow these tips to get the best interest rate for |
| nearest 0.125% (with a maximum rate of 8.25%). | | | | your loan consolidation. |