Ibr after consolidating
The new, refinanced loan can have completely different terms, too.
For instance, you might be able to get a much lower interest rate and shorten your repayment term.
It will have a fixed interest rate based on a weighted average of the loans you consolidate.
By taking out a Direct Consolidation Loan, you can minimize the stress of your debt while retaining your federal loan benefits.
If you have multiple federal student loans and want to simplify your payments, consolidating can be a smart strategy.
One way to consolidate your debt is to apply for a federal Direct Consolidation Loan.
When you take out a Direct Consolidation Loan, you can extend your repayment term to up to 30 years and get a smaller payment.
You’ll get a new loan equal to the combined amount of your old loans.Often, Direct Consolidation is required in order to enroll in federal programs such as income-based repayment.While the terms are sometimes used interchangeably, consolidating your loans is different than refinancing them.Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns.