Sexcamdate - Is anyone consolidating private student loans
Once the application is submitted, the federal government estimates that it takes 60 to 90 days to officially complete the consolidation process.
Consolidating private loans works in a similar fashion, as far as paperwork goes.
While loan consolidation can sometimes dramatically lower a borrower's monthly payments, Kevin Walker, co-founder of the college finance site Simple Tuition.com, says it can also cost you."The downside of getting a lower monthly payment is that you're going to subject yourself to substantially more interest charges over the life of the loan," he says.
The silver lining is that all federal consolidation loans and some private ones don't have prepayment penalties. " Bankrate's community sharing policy Bankrate wants to hear from you and encourages thoughtful and constructive comments.
When eyeing consolidation options for private loans only, Mayotte says borrowers should evaluate the new loan's hardship protections and repayment terms in addition to the interest rate."If the terms you're going to get are the not as generous as the terms you already have, consolidation is probably not a good idea," she says.
Regardless of whether consolidating federal or private loans, there is a catch.
And once consolidated, they usually have variable interest rates, O'Connor says. Consolidating private student loans when interest rates are low (like now) "could potentially save thousands of dollars." It also means your interest rate can fluctuate higher as the years tick by.