Consolidating federal stafford loans
What if I have both federal and private student loans that I want to consolidate and/or refinance? That’s ok, we like a good challenge (plus, the answer is more simple than you might think).
Up until recently, it wasn’t possible to consolidate federal and private student loans. We allow you to consolidate through refinancing, giving you a better rate at the same time as simplifying your monthly payments.
Federal consolidation loans have fixed interest rates.
We strongly believe that student loan refinancing is a great opportunity to save money for many people.But, as with most rules, there are some exceptions.Here’s when a Direct Consolidation Loan may be your best bet: However, if you are a good candidate for refinancing, and you don’t qualify for any of the above government forgiveness programs, refinancing with Earnest could save you thousands — even tens of thousands — of dollars.For example , if a borrower had a ,500 loan at 3.4% and a ,000 loan at 6.8%, the interest rate on the federal consolidation loan would be This would then be rounded up to the nearest 1/8th of a point, or 5.375%.Assuming a 10-year repayment term, the monthly loan payments on the 3.4% and 6.8% loans would be .81 and 5.08, respectively, a total of 8.89, while the monthly payment on the consolidation loan would be 8.84.