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Student loan consolidation will not hurt your credit score and your new interest rate will be based on the weighted average of your existing loans. Refinancing with a private lender requires a ...
But with Direct Consolidation Loans, your interest rate is calculated as the weighted-average interest rate of the loans you’re consolidating, rounded up to the nearest one-eighth of a percent ...
Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The fixed interest rate is calculated as the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0. ...
Consolidate your federal loans. A Direct Loan Consolidation combines your federal student loans into a new, individual account. You can extend your repayment period and lower your monthly payment ...
You have high-interest private student loan debt. Your new loan (whether federal or private) carries a much lower APR than your current student loan debt. See related: How to consolidate student loans
If you have multiple federal student loans, you can combine them into one loan with fixed interest. If you decide to consolidate your loans into a Direct Consolidation Loan, you can do so for free.
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