Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.
You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.
Here's what you need to know before deciding to consolidate student loans.
Loan consolidation is when a borrower takes out a new loan to pay off several smaller student loans.
If you’ve recently graduated from college and have student loans, you may have heard about loan consolidation. It’s possible that you have multiple loans from different sources such as federal student loans and private student loans.
So how do you find the best student loan company for you?This can be attractive to borrowers because the consolidation frequently results in longer repayment periods and lower monthly payments.When it comes to consolidation, the types of loans you have matters, but most federal loans, including Stafford, Perkins, Direct Plus and Supplemental loans, can be consolidated with other federal student loans."The interest rate on (federal) consolidation loans is an average of the interest rates on the (federal) loans you're consolidating," says Ken O'Connor, director of student advocacy for Fynanz, a New York City firm providing technology for the private student loan market.BANK Entering these numbers into the loan calculator LOAN CALCULATOR, YOUR LOANS SUBSIDIZED LOAN, UNSUBSIDIZED LOANS at gov— CALCULATE, 0/MO on a standard ten-year repayment plan, you’re going to be paying a little over five hundred dollars a month.STANDARD 10-YEAR REPAYMENT PLAN 5/MO, 0/MO, 5/MO 0/MO Over ten years, you’ll pay about eleven thousand dollars ,000 INTEREST in interest on your original principal of fifty thousand dollars.