When you consolidate multiple student loans or refinance a single student loan, you may receive a lower monthly payment with a reduced interest rate or an extended repayment term.Keep in mind that extending your repayment term may increase the amount of interest you pay over the life of the loan.
However, the interest rate is fixed for the life of the loan.
The last section is dedicated to identifying the best private consolidation loans for those with a few different financial profiles.
There are two types of consolidation loans: federal and private, and they each come with distinct advantages and drawbacks.
College students can take out new loans each year they're in school, so by the time graduation comes, it's common to have half a dozen, or more, individual loans.
Each of them may have different terms, including interest rates.