Consolidating student loans through government
Student borrowers may be able to reduce their federal consolidation loan interest rate by an extra 0.25 percent by electing to make their monthly payments through an automatic electronic debit from a bank account.This means that you authorize the payments to be made from your checking or savings account.You may call the Loan Consolidation Center at 800.557.7392 with any questions after you submit your application. You start paying your loans with good intentions, but life happens—maybe you lose a job, get sick or injured, or take a big pay cut—and you fall behind on your payments. When you get into a situation like this, you may think that consolidating your student loan payments may be a good strategy to gain control of your finances. But before we get in to how consolidation works, it’s important to be sure you understand what consolidation actually is.Any of these plans can dramatically lower your monthly payment.Refinancing your federal loans with a private lender will cut you off from federal benefits such as income-driven repayment plans.The eligible loans listed on the application are paid off by the consolidation loan.
When you bundle together private loans—or a mix of private and federal—you’re actually refinancing rather than consolidating.
If you’re interested in exploring your options with credit unions, check out Lend Key.
Lend Key acts as an online portal that helps you search for refinancing options through community lenders and credit unions across the country.
By consolidating your education loan(s), your interest rate will be fixed and determined by the weighted average of the interest rates on the loan(s) being consolidated, rounded to the nearest higher one-eighth of one percent.
You may determine your interest rate by using the Repayment Estimator on the click on the Repayment & Consolidation tab.