The terms “refinance” and “combine” are now and again utilized interchangeably whenever discussing figuratively speaking. But although it’s possible to mix numerous loans into one through the entire process of refinancing, the definition of “student loan consolidation” is usually utilized to spell it out a certain strategy available through the government.
Federal pupil loan consolidation is when you join a few federal loans together, causing you to be with just one outstanding stability and payment per month. It is various from refinancing, though, as you have no need for good credit to qualify, so you will not get a lesser interest.
Alternatively, your rate that is new will a weighted average of the past loans’ prices, rounded as much as the following one-eighth of just one%. 阅读更多