Now that you have your college degree and have started a new job, the time has come to start repaying your student loans. The average student owes over $20,000 in student loans by the time they graduate, some to more than one lender.
Most students will consolidate their loans in order to have one cohesive loan payment, and interest rate rather than multiple accounts. Consolidating your student loans is an option, but there are a few things to take into consideration before moving forward with the process.
A number of federal loans are eligible for consolidation including Stafford, Federal Nursing, and Perkins loans. In order to consolidate these loans you must be in good standing during a repayment or grace period. Some restrictions apply and not all loans may be consolidated. You can combine your loans using the federal loan consolidation program, where you’ll receive a fixed interest rate for the life of the loan. There are also several repayment plans to choose from so you’ll be able to find one that best fits your needs.
This is where it can get tricky. Private loans can only be consolidated with other private loans. You are also likely to receive a variable interest rate which will depend on your credit. Getting a co-signer is an option, but you’ll need to look into the terms and conditions that may apply. Private loans may not offer borrower protections like deferment in cases of financial hardship, but this varies by the type of debt consolidation you choose.
Consolidating your student loans is a great option, as long as you’re educated about your choices. AmOne’s knowledgeable Money Coaches can provide you guidance if you’re considering consolidating your student loans. AmOne offers solutions; your call to us is free and we won’t try to sell you anything. Find out how to reach us and learn more about how AmOne can help you today.