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Is it possible to re-finance a consolidated student loan to get a better interest rate?
Wiki User
∙ 15y ago
The interest weight of a consolidation loan is now the weighted average of the interest rates of the loans being consolidated, rounded up to the nearest .25%.
It's not mathmatically possible to get a lower rate with this formula.
In addition to that, federal regulations do not allow each borrower more then one consolidation, except in a few limited circumstances:
- if you have a consolidation loan that has been referred to the guarantor for default prevention, or defaulted, you may be able to consolidate directly with the federal government on an income-contingent-repayment plan.
- Certain public service positions have repayment benefits, and effective 7/1/08, eligible borrowers who already consolidated may re-consolidate with the direct loan program in order to get those benefits.
Wiki User
∙ 15y ago
Wiki User
∙ 11y agoThere are many banks and companies that are willing to refinance your student loans. This is a good idea if you have many different loans or are having trouble with the payments. Do not refinance loans that are provided by the government, those are safer than private loans.
Wiki User
∙ 14y agoYes, it is possible to refinance student loans. If done correctly, it can save you hundreds or even thousands of dollars when repaying your loan.
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Is it possible to refinance a student loan?
Federal student loans made after July 1, 2006 have a fixed interest rate. But, most private student loans have variable interest rates. For more information it would be a great idea to give your bank a call.
Can student loans be refinanced I am currently paying an interest rate of 7.125% and wanted to see if this could be lowered.?
It is definitely possible to refinance a student loan. The best place to check is with a local bank to see if they can give you a lower interest rate. You can find a good bit of additional information at the following website: http://www.studentdoc.com/refinance-student-loans.html Good luck!
Can you pay a consolidated student loan with high interest with a new student loan at lower rates?
Probably, but you are unlikely to be granted a large enough loan to refinance your consolidated loans. Yearly loan amounts are usually capped to your need for the current loan period (a year, usually) and you might not be able to borrow more than your current yearly educational outlay. But that depends on how large your conslidated loan is.
How does one apply for student loan refinance?
It is not possible to apply for a student loan refinance as for federal loans, which is usually what a student applies for, there are only two methods to pay off the loan, one pays as they earn the amount, or you pay through your income.
How can student loan debt be consolidated?
Student loans can be consolidated after graduation or dropping out of school by filing with the government to consolidate all federal student loans. Remember that non-federal loans cannot be consolidated.
Can a person refinance student loans even though they have already been consolidated?
You can only consolidate your federal student loans once, unless -you need to re-consolidate in order to qualify for public service options that were not available when you previously consolidated. -your existing consolidation loan has been referred to the guarantor for default prevention, or has defaulted, but is not yet in wage garnishment status.
I want to refinance my student loan.?
The best way to lower your payments and interest rates would be to consolidate your loans. You can do this by visiting http://www.loanconsolidation.ed.gov/.
How do you start to refinance a college loan?
"To refinance a student loan, first find the institution that is offering the lowest interest rate. Next, contact the instituion about refinancing, making sure to have all of your loan and banking information."
Where would one consolidate student loans?
Almost all federal student loans can be consolidated under the Direct Consolidation Loan program. They offer multiple repayment plans and fixed interest rates. Private student loans that do not qualify for consolidation under the Direct Consolidation Loan can be consolidated through separate programs such as NextStudent, Student Loan Network, and Wells Fargo.
What is meant when bankers and investors use the words student loan consolidation interest rate?
When bankers and investors use the term "student loan consolidation interest rate," they are referring to the interest rate that borrowers will be charged when they consolidate their student loans. Student loan consolidation allows borrowers to combine multiple loans into a single loan with a new interest rate, typically based on the weighted average of the interest rates of the loans being consolidated.
Are interest rates the only benefit of a consolidated student loan?
Consolidating your student loans enables you to have one payment each month rather that having multiple payments to multiple lenders and multiple billing invoices.
What companies offer a consolidated student loan?
Many different companies offer consolidated student loans. Some examples of these companies include Loan Approval Direct, Next Student, and DebtConsolidation.
