Current interest rate consolidating student loans
Refinancing has the added benefit of reducing the cost of your loans if you qualify for a lower interest rate or monthly payment.
Be sure to weigh the tradeoffs before refinancing, though, especially if you include federal loans in the bundle.
Certain public service workers may qualify for loan forgiveness in just 10 years, tax-free.
The standard payback period is 10 years, but there are other programs, called income-driven repayment plans, that tie loan bills to income.If you're eligible for a lower rate than you currently pay, you could save a significant amount on interest, making it an especially appealing option for borrowers with high interest private loans.Before taking the plunge to consolidate and refinance student loans with a private lender, consider the following: Your credit score matters: Those with high credit scores will get the lowest interest rates on a refinance loan.But the longer you take to pay off a loan, the more interest you'll pay over time.The sooner you can pay off your student loans, the sooner you can divert more of your savings to retirement, a home down payment or college savings for your kids.
Unlike federal student loan consolidation, refinancing is available for both federal and private student loans.