- Make sure you read all the documentation presented to you carefully-these items detail the promise you’re making to repay.
- Next sign the application. Your financing servicer will be your section from get in touch with off this time towards the.
Step 4: Continue and make the loan money!
When you fill out your application, your bank or servicer often procedure the latest refinance otherwise combination mortgage, hence takes time. You need to keep sending loan money towards the prior loan providers if you don’t located confirmation that consolidation otherwise refinancing procedure is actually complete. Don’t be concerned, if one makes one costs you to definitely occur adopting the brand new refinance otherwise integration financing is done, you might be reimbursed.
You should be in search of finally disclosures from your bank that have the fresh mortgage terms you are fundamentally agreeing in order to. It is something which needs to be closed and it indicators the end of the road for this entire process.
So you want to mix the student education loans making cost a small convenient. You have got a couple possibilities, possibly consolidate otherwise refinance your own finance. You do not ensure and this option is good for you, therefore let’s talk about the several alternatives disagree.
Education loan Consolidation versus Refinancing
Student loan consolidation allows you to combine (usually) two or more of your federal student loans into a new federal loan, known as a Direct Consolidation Loan. A Direct Consolidation loan will allow you to extend your repayment term (up to 30 years), but your current rate of interest may not be faster. The new loan’s interest rate is determined by calculating the weighted average of the loans you are consolidating (rounded up to the nearest one-eighth of a percent). Your lender will remain the U.S. Department of Education.