Consolidating student loans bbs
Financial aid, student jobs and generous family members all make it possible to afford a critical education that would otherwise be out of reach for many of us.The point is, it probably doesn’t matter where you went to school.But if you do decide to consolidate your loans, it's good to keep in mind that you always have the option of paying more than your monthly payment which can save you money over time, while still having the flexibility of not having to make the higher monthly payments that you would have on a standard ten-year plan. If you're struggling to make payments on your original loans, you might consider repayment options other than loan consolidation, like an income-based repayment plan.Or if you run into a financial hardship and need short-term relief, you might consider deferment or forbearance.Even you have both federal and/or private student loans then you can consolidate them, refinance, and get a better rate.Refinancing your student loans is easier than you think and many Millennial Money readers have refinanced, saving hundreds of thousands of total dollars in interest.To get you the best rate, I personally worked with Credible and Lend Key to get the best available rates for you.If you want to save time and check your rate now, I recommend using Credible.
Now as you can see, keeping track of these loans might get complicated— especially if you’re making payments to different loan servicers.
Subtract your original fifty thousand dollars, and you’ll see you’re paying over thirty one thousand dollars in interest, compared to the eleven thousand dollars you’d pay on the standard ten-year plan.
So while simpler and lower monthly payments might give you some relief in the present, the trade-off is that it can cost you a lot more over time. This means that you may miss out on some of the repayment benefits you might have been eligible for on your previous loans, like interest free deferment on subsidized loans or loan cancellation for special circumstances.
That’s a lot less than the five hundred dollars a month you would have spent on a standard ten-year repayment plan.
But, paying two hundred seventy dollar per month for twenty-five years means you’ll be paying a total of about eighty one thousand two hundred fifty dollars over the life of your loan.
Getting your master’s, going to law or medical school can easily double that amount alone.