Where do I find the lowest student loan consolidation rates? Does a lower rate automatically mean I pay less for the student loan?
Federal Student Loan consolidation is trickier than other types of loan consolidations. You cannot consolidate numerous times as you can with conventional loans. If you have already consolidated then a new lower rate comes along, you cannot consolidate again. So timing is extremely important when checking out student loan consolidation rates.
You might be looking to consolidate student loans because your budget is tight. You’re looking to create a little space between your bills and your wallet. Fair enough, many people do this. However, you should be aware that if you stretch a 10-year student loan to 20 years, your payments will drop by 34%, but you will pay double the interest over the extended period of time.
Federal student loans are offered at a fixed rate, so it may not save you any money at all to consolidate them. Private loans do come with variable interest rates, so it is possible to get lower student loan consolidation rates.
One other factor to keep in mind is your credit score. As a graduating high school student you have little or no credit history. Upon college graduation, that is no longer the case. Develop a good credit score and you can quite possibly negotiate with the private loan holder to help with your student loan consolidation rates.
