The application to refinance is similar to an application for a new loan and market rates and your financial profile determine the new loan's interest rate.Both consolidating and refinancing can take away the headache of managing multiple student loans, but there are pros and cons to consider before you apply.In some cases, you might even save money or lower your monthly payment.
Pros: There are many pros and cons to consider before deciding to consolidate or refinance student loans.
Either way, you'll simplify the repayment process combining several loans into one.
When you start repaying those loans, tracking multiple lenders and payments each month might be a pain, but you can simplify things by consolidating or refinancing your student loans into one new loan.
You may be able to consolidate your federal student loans, which involves combining most or all of your federal loans into one new Federal Direct Consolidation Loan.
You'll have one payment each month and one interest rate that's based on your current loans' rates.