Pros and cons of consolidating school loans
Fixed-rate loans often have higher rates than the introductory rates on variable loans.However, borrowers have peace of mind knowing their monthly payments will always be the same amount.Finding the right bank to refinance or consolidate your student loans is confusing.Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation.Borrowers typically have the option to make interest-only payments during this period in order to prevent accruing interest from increasing their balance.Many parents take out "Parent PLUS" loans to pay for their children to attend college.Variable-rate student loans have interest rates that can change during the repayment period.Interest rates may increase or decrease at any time and typically do so based on changes to LIBOR.
Unpaid interest will continue to accrue and will be capitalized (added) onto the borrower's principal balance.
Loans currently in default are generally not eligible for refinancing.
This is the lowest credit score a lender will consider when determining borrower eligibility.
Some lenders will permit the refinancing of those Parent PLUS loans from the parent's name into the name of the child/graduate.
Indicates whether or not the lender allows loans that were previously in default, but have now been rehabilitated, to be refinanced.