Consolodating school loans low interest rate
If you're consolidating with the federal government, consolidating your loans means combining your multiple federal student loans into one new federal loan, called a Direct Consolidation Loan.You have some flexibility in picking your loan term, but you'll simply receive an interest rate that's a weighted average of your existing rates.
In 2017-2018, Direct Subsidized Loans come with a 4.45% interest rate, according to the U. Department of Education, which is much lower than the rate used in the private marketplace.
These are just a few of the issues to keep in mind when students, or former students, are contemplating consolidation.
Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!
Next, why would you want to consolidate student debt?
If you choose the Federal Direct Consolidation Loan program, you'll end the headache of managing multiple bills each month.