Cost of consolidating student loans

of the interest rates on the federal student loans that are combined into the consolidation loan.

The weighted average combines the interest rates into a single interest rate that yields a combined cost that is about the same as the cost of the original separate loans.

cost of consolidating student loans-6

Any payments and savings will depend on the actual amounts for which you are approved, should you choose to apply.

We’ve been writing about debt consolidation a lot lately – and one of the reasons is that there is so much confusion surrounding this topic.

Multiply this by 100 to express it as a percentage. ,691 / ,000 = 6.7275% Then round the result to the next nearest 1/8%.

6.7275% rounded up to the nearest 1/8% = 6.75% Thus the interest rate on the consolidation loan that combined these three loans would then be 6.75%.

Any payments and savings will depend on the actual amounts for which you are approved, should you choose to apply.

We’ve been writing about debt consolidation a lot lately – and one of the reasons is that there is so much confusion surrounding this topic.

Multiply this by 100 to express it as a percentage. $2,691 / $40,000 = 6.7275% Then round the result to the next nearest 1/8%.

6.7275% rounded up to the nearest 1/8% = 6.75% Thus the interest rate on the consolidation loan that combined these three loans would then be 6.75%.

$1,360 $790 $541 = $2,691 Add the loan amounts together to obtain the total loan amount.

||

Any payments and savings will depend on the actual amounts for which you are approved, should you choose to apply.We’ve been writing about debt consolidation a lot lately – and one of the reasons is that there is so much confusion surrounding this topic.Multiply this by 100 to express it as a percentage. $2,691 / $40,000 = 6.7275% Then round the result to the next nearest 1/8%.6.7275% rounded up to the nearest 1/8% = 6.75% Thus the interest rate on the consolidation loan that combined these three loans would then be 6.75%.$1,360 $790 $541 = $2,691 Add the loan amounts together to obtain the total loan amount.

,360 0 1 = ,691 Add the loan amounts together to obtain the total loan amount.

,000 ,000 ,000 = ,000 Divide the total per loan weight factor by the total loan amount.

Instead of making multiple payments to multiple lenders, the borrower only has to pay off the new consolidation loan, says Michelle Pezzulli, vice president of operations for Credit Union Student Choice, a student lending service provider in Washington, D.

C."That new loan will have its own interest rate; it will have its own repayment terms; it will have its own terms and conditions," she says.

Even if your rates seem high, t he Department of Education puts a cap on consolidation loan rates at 8.25 percent.

One major advantage of federal consolidation loans is that borrowers don't need a stellar credit score to qualify, they can apply any time (even if their loan is in default) at Loan gov, and they'll always get a fixed interest rate.

If you are making more than one student loan payment each month for your various types of loans, you may be tempted to consolidate to get down to one payment each month.