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Current rates consolidating student loans

current rates consolidating student loans-77

That means you are no longer eligible for federal relief programs, this includes hardship-based repayment plans and PSLF.Still, there can be some major benefits to converting your debt and in the right circumstances, it may be your best option. If you have a high credit score then the biggest benefit, by far, would be the interest rate reduction.

That’s a long time to pay off your debt; it’s equivalent to a traditional mortgage.It works similarly to a credit card debt consolidation loan.You qualify based on your credit score for a loan amount that’s large enough to pay off your existing loans.If your financial situation changes with a private loan, it’s different.Only some private lenders offer deferment or forbearance options.The nice thing about hardship-based repayment is that the monthly payment changes based on your current income.

If you lose your job and have no income, you may actually pay nothing and still have payments count as qualified.

In other words, the federal government is essentially their customer, so they don’t care as much about keeping you happy individually.

Anyone who can qualify for Public Service Loan Forgiveness should think carefully before converting their debt.

Namely, because you are their customer and it’s in their best interest to keep you happy.

On federal loans, they are literally private student loan servicers chosen authorized by the federal government.

But it’s important to understand the benefits and consequences of doing so.