Refinancing or consolidating student loans will simplify your loan repayments and reduce interest rates in cases when refinancing is feasible. The kind of student loan you can take out, along with the total amount, you can decide which option you select. It’s worth looking into to see if student loans can be forgiven.
What is the Process of Consolidation and Refinancing?
It is possible to consider refinancing your loan or consolidation if there are difficulties paying for your student loans. United Aid Group helps students in this regard. Both can help you reduce your monthly expenses and ease the repayment process. There are little in common. Determining whether you are eligible for a forgiven student loan is also possible.
Refinance can replace the loan with an additional loan from a private lender. Consolidation is offered through a federal program and is only available for students with federal loans. Consolidating Federal Student Loans
Direct Loan Consolidation with the U.S. Department of Education is only applicable for federal loans. If you own federal student loans, you can refinance them, or private loans, or both.
Direct Loan Consolidation permits the replacement of all federal loans with better ones. Consolidation can provide many benefits that, include:
- Borrowers can consolidate their loans with a loan from Federal Family Education Loan (FFEL), parent PLUS loans, and other loan programs to avail benefits like loans that forgive debt or installment plans based on income.
- A consolidation option is available for students who’ve fallen behind on their student loans.
- Borrowers can extend the repayment term up to 30 years.
Federal loan consolidation doesn’t impact your credit score since there isn’t a credit check.
The federal consolidation plan doesn’t provide reduced interest. Instead, the federal government rounds up the average weighted rate on Federal student loans to the nearest one-eighth of a percentage. The ideal scenario is for the interest rate to stay the same for all your loans.
Private and Federal Loans Refinancing
Refinance federal student loans and private student loans with the United Aid Group. United Aid Group’s Benefits could be based on the circumstances you face:
- A lower interest rate could be available to those with good credit scores.
- Flexible individuals can pick to go with a lower or longer repayment time.
- Parents who take out loans to support their children’s education during school can transfer their debts to them after they finish, provided that both parties are on the same page.