Student Loan Consolidation Interest Rate

When you are consolidating your student loan, which is the first thing that comes to mind? Many of you might say it is the interest rate. There is nothing wrong with that, indeed, as a consumer, you deserve the best interest rate when consolidating your loans. So, here are some tips to help you get the best rate.

1. Credit

The easiest way for you to get the best price is to have a credit rating of at least 660.

2. Other criteria

However, there are other factors involved that can affect your interest rate, such as family size, the loans that are held, professional future, the annual income and co-signer's credit history (only necessary when you is to consolidate private student loans).

Let's look at the income-contingent repayment (ICR) plan. In this plan, your minimum monthly payment is only $ 5, and this amount should not be much of a problem for most of you. However, only eligible for this plan when you have a family and you are a provider of direct loans. So, you see, there is much more complicated than a credit score when you are talking about the rate for your student loan consolidation.

3. Amount and period of

The more loans you consolidate and longest of his loan period, the best rate you can get. However, this is not something worthy of applause. Although you can enjoy the low rate, you are actually paying more at the end of their period of long-term loan.

4. Federal or private

As you probably know, federal loan consolidation does not matter what your credit score is simply locks in the lowest rate for the whole loan period. Since the interest rate for student loan consolidation federal government is the review in July, 1 of every year is better than you consolidate your student loans after that.

Although the rate of private consolidation loans can fluctuate with the market rate, this means that you can negotiate the interest rate with private loan consolidators. You can even enjoy lower rate when you and your co-signer's credit history is good. Moreover, private loan consolidators also offer various discounts and incentives for you to save some money, even you are not eligible for fixed interest rate.

5. Online Services

Speaking of discounts and incentives, loan agencies increasingly are willing to give a better rate student loan consolidation interest when they take their services online.

And minimize time fetching discussions, many lending agencies are beginning to show his pay package and line type. This can save time when investigating what the lending institution to go a.