Consolidating non direct student loans club dating in
You’ll get a new loan term between 10 and 30 years, depending on your balance. A longer term also will result in paying more in interest.
But you can always pay off your loan faster if possible, which will save money.
Most private lenders will only refinance other private loans, but So Fi will refinance both private and federal loans. Because confusing these terms can lead to not knowing your student loan options, which can lead to leaving money on the table.
For example, one of the biggest student loan myths out there is that borrowers are unable to refinance previously consolidated loans.
Take the words “consolidate” and “refinance,” for example.
Both of these fall into the category of “things you can potentially do with your student loans” and as a result they’re often used interchangeably.
And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward –- and free. " Like the federal government, private companies offer the option to consolidate multiple student loans into one.
We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. We're on your side, even if it means we don't make a cent.
So here’s the scoop: If you consolidate student loans through the federal loan consolidation program, you’ve simply combined multiple federal loans into one loan, with a resulting interest rate that’s a weighted average of the original loans’ rates.Like the federal government, private companies offer the option to consolidate multiple student loans into one.If there’s anything clear about student loans, it’s that the terminology associated with student loans is often far from clear.The term “consolidation loan” is a bit of a misnomer, because unlike federal loan consolidation, the lender evaluates your financial data to offer you a new interest rate that isn’t simply an average of your prior rates. Like student loan consolidation, refinancing can also result in combining multiple loans, but hopefully you’ve gotten a better interest rate in the process.If you lower your resulting interest rate through refinancing, you can potentially lower your monthly payments or reduce your loan term, and you’ll save money on total interest over the life of the loan.But it’s only for federal loans, and it won’t cut your interest rate.Consider federal consolidation if you: Your new fixed interest rate will be the weighted average of your previous rates, rounded up to the nearest one-eighth of 1%.*Savings calculation is based on So Fi borrowers who refinanced between 5/21/14 and 7/2/14.Prior to refinancing, these borrowers had on average a ,000 loan balance, a rate of 7.07% and a lifetime payment of ,239, assuming the standard Direct Loan term.After refinancing, these borrowers have an average lifetime payment of ,456 based on a weighted average of new rates received across both types (fixed and variable) and all terms offered by So Fi with Auto Pay.Savings calculations assumes borrowers make all payments in a timely manner and do not prepay.