At a time when the economy is still in recovery and finding a well-paying job is easier said than done, the results of this debt could be devastating.
Perhaps that’s one reason around 7 million borrowers are in default, according to the Consumer Financial Protection Bureau. Consolidating your student loans can be a great way to ease financial strain — and the stress that goes with it. There are repercussions to refinancing that you should know before you sign on the dotted line.
If you find yourself paying 4% to 10% in interest each year, you are paying too much.You may have been wondering, “Should I consolidate my student loans? Here are a few of the benefits of consolidating your loans. This If rates have dropped since you originally borrowed your loans, or if your financial situation and credit score have improved, lowering your interest rate could save you a decent chunk of change — and may also allow you to pay your loans off faster.Change your variable interest rate loan to a fixed-rate loan.Over the last couple years student loan refinancing and consolidation has become a hot topic in the United States.As it sounds, refinancing allows undergraduate and graduate borrowers to refinance student loans at a potentially lower interest rate.