Question about student loan consolidation?
I have loans that have been previously established and a set of loans is a interest rate of 5.25% (ie most of my loans) and the rest have an interest rate of 6.8%. Would it make sense to consolidate together to get an interest rate. I think the most likely of 5.25% will increase which will mean eventually going to pay more for the part of my loan. Is that correct? I'm not worried about getting smaller monthly payments as more than the minimum payment each month anyway. Could you help me to determine what are the pros and cons would do it now? Or if only to leave them alone. I was on the website of tha http://loanconsolidation.ed.gov/borrower/borrower.shtml using the loan calculator and found that my interest would be 5.5% which is not much more than 5.25%, but it's worth? Thanks!
You have to compare the annual interest cost of having the two separate loans from the loan of 5.5%. If you lower interest costs, then obviously helps to consolidate into one loan.
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