Pros and cons of consolidating federal loans

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The limits vary for each year of study, depending on the length of the program and the student’s year of study.There is more information on Stafford loan limits on the Department of Education’s web site.Unless the lender determines that extenuating circumstances exist, you will not pass the credit check if you: Consolidation is similar to refinancing a loan.You can consolidate all, just some, or even just one of your student loans.The fixed interest rate for undergraduate Stafford loans first disbursed on or after July 1, 2019 and before July 1, 2020 is 4.53%. Most older loans from before July 2006 have variable interest rates.After 2007, the interest rates are fixed, but change almost every year.

The National Council of Higher Education Resources (NCHER) also has a fact sheet with a list of guaranty agencies.

The interest rate must not exceed 8.25% for consolidation loans prior to July 2013.

Consolidation loan borrowers should not be charged origination fees.

Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.

Direct consolidation loans are now the only type of federal student consolidation loan.

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