Current rates consolidating student loans
The funds pay off your existing loans, leaving only the new loan to pay off.
This type of consolidation offers three key benefits: This can be an extremely useful form of school loan debt relief.
Loan qualification and the applied interest rate are typically based on your credit score.
That’s different from federal student loans you get by completing your FAFSA.
This program erases your remaining balances without penalties after 10 years on a repayment plan.
That can dramatically reduce your total costs and time to payoff.
With hardship-based plans the term is almost always 20-30 years.
That’s a long time to pay off your debt; it’s equivalent to a traditional mortgage.
You and the lender find a monthly payment that you can afford and go from there. If you enroll in a hardship-based repayment plan, you must recertify your income and family size each year. Unfortunately, federal loan servicers aren’t known for great customer service (that’s the last point).
In addition, you can also set the term on the loan.
With federal loans, the term for non-hardship plans depends on how much you owe.
For those, qualification is need-based and the interest rate is set according to the 10-year Treasury Note Index.
Building on that, a private consolidation loan for student debt comes from a private lender.
Search for current rates consolidating student loans:
So, whether you have terrible credit or perfect credit, your rate would be the same.