Does consolidating student loans save money

by  |  17-Jul-2016 16:49

Moreover, private loans and federal loans can't be consolidated together, Kantrowitz said.

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As with the Stafford Loans, there are both Direct and FFEL consolidation programs.

To a college grad swamped with multiple student loans that have come due, loan consolidation is an enticing option.

For example, a $20,000 Stafford loan on a standard 10-year repayment with a 6.8% interest rate would require a monthly payment of $230, and the total interest paid over the life of the loan would be $7,619, he said.

But if a borrower locked in the interest rate of 2%, payments on the loan would be $184 a month, and total interest paid would be $2,083 over the same 10 years.

LOUIS (Market Watch) -- Former students who consolidate their federal student loans can get a good education in saving money.

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