Reconsolidating a student loan
However, Brian Mc Bride, an associate producer at CNN and a 2010 graduate out of Arizona State University, managed to pay off $26,500 in debt in just two years. Mc Bride owed $20,500 in student loan debt and $6,000 for his 2003 Honda Civic.
If you choose the Federal Direct Consolidation Loan program, you'll end the headache of managing multiple bills each month.There are a lot of debt consolidation programs out there.Student loan consolidation programs are unique because they offer certain benefits that only come with student loans.In his first job out of college as a local reporter in Green Bay, Wisc., he lived frugally while working for $13 an hour. Student loan consolidation is the act of putting various (or even one) loan into a new package.You'll also preserve the robust benefits of federal student loans, such as Income-Based Repayment, that private lenders don't offer.
However, you'll need to carefully consider your personal situation in order to make this decision - since the interest rate you'll receive is a weighted average among all your existing loans, rounded to the nearest 1/8 of a 1%, you might actually raise the overall amount you pay in interest.
Your new loan will come with whatever borrower protections your new lender specifies.
(Be sure that, at minimum, you can take advantage of deferment and forbearance so that you have some cushion in the event of an emergency).
Check out the official government site for all the details on eligibility.
If you're consolidating with a private lender, consolidating your loans means combining and refinancing your loans into one new private loan.
For consolidating with a private lender, research which lender offers the right options for you. Kaitlin Butler is Content Manager at Common Bond, a student lending platform that provides a better student loan experience through lower rates, exceptional customer service and a commitment to community.