For example, a ,000 Federal student loan at 6.8% will cost a borrower ,619 to repay – ,619 in interest.By contrast, if that student refinanced into a private student loan, they could significantly lower their interest rate and monthly payments.Maximum Loan Amount: None Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent.Currently, the interest rate is fixed for the life of the loan.One situation that is very common is the graduate who has Federal student loans but is just on the standard repayment plan.
Consolidating multiple loans into one single loan can really help borrowers who prefer to have a simple, single payment for their student loans.
You are eligible for any “Direct” repayment plan – and you can setup a timeline from 10 to 30 years to pay back the loan.
This is one of the best ways to lower your current payment on your Federal student loans.
When you consolidate your Federal student loans, you go through the Direct Consolidation Loan program.
This program is designed specifically for Federal student loans and is administered by the Department of Education.