Us department of education consolidating student loans

So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.

Additionally, you’ll get a new loan term ranging from 10 to 30 years.

The remainder of the application involves filling in basic personal information and providing names of two references who have known you for at least three years.

We’ve got you covered with our Student Loan Smarts blog series.

Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.

If you have Perkins loans, think twice before consolidating them; you’ll lose access to Perkins loan cancellation if you do.

Federal loan servicers are private companies that manage federal loans for the Department of Education.

Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.

When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.

Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.

And while you’re at it, check out So Fi’s new Student Loan Debt Navigator tool to assess your student loan repayment options. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.

If you choose an income-driven plan, you’ll be asked to provide income information on the application by granting access to your IRS tax information.

You can opt out, but you’ll have to submit a copy of your most recent federal tax return directly to your loan servicer after you finish the consolidation application.

Private student loan consolidation, or refinancing, means replacing multiple student loans — private, federal or a combination of the two — with a single, new, private loan.

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