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Top Questions about Student Consolidation LoansWhy should I consolidate my student loans?Consolidation offers many benefits-even if you're currently making your monthly payments without any difficulty.
Won't my total cost increase if I extend repayment to 30 years?Extending the repayment period does increase total interest payments, since smaller payments are made over a longer period of time. However, there are no prepayment penalties for accelerating repayment, so you could pay off the loan in a shorter period of time and save on total interest payments. Can my parents consolidate their Federal PLUS loans with my student loans?All loans must be under the same borrower's Social Security Number, thus parents cannot consolidate their PLUS Loans with their children's Stafford Loans, or vice-versa. How is the interest rate determined?The interest rate is determined by taking a weighted average of the interest rates on all loans to be consolidated and rounding up to the nearest 1/8 of a percent of 8.25%, whichever is less. Is the interest tax deductible?Most people can deduct interest paid on federal student consolidation loans. Consult your tax advisor for more information. How do I know what my payment will be?Try our consolidation loan calculator to get an idea of the savings you can expect from a consolidation loan. |
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