Consolidating student loans different interest rates

We start by discussing the basics of student loan consolidation and refinancing, and comparing the benefits and drawbacks of federal and private consolidation loans.We then detail a step-by-step guide to using and choosing consolidation loans.The main reason to consider refinancing is the possibility of getting a lower interest rate.They both have very different pros and cons, and very different situations in which they make sense.When I talk to people who are frustrated with their student loan debt and want to get rid of it as soon as possible, there’s one question that comes up over and over again: Should I consolidate my student loans?It’s a tricky question both because there are a lot of variables to consider and because there’s a lot of misinformation out there about exactly what student loan consolidation is and how it can help you.So my goal here is to correct that misinformation and show you exactly what student loan consolidation is and when it can help you.

But those are two very different things with very different pros and cons.With respect to student loans, consolidation specifically refers to the Federal Direct Consolidation Loan program, which essentially allows you to turn one or more federal student loans into a different kind of federal student loan.The main reason you would consider consolidation is it may give you access to the best federal student loan repayment plans. On the other hand, refinancing means taking out a new to replace one or more federal or private student loans.WPCU offers a Private Consolidation loan, which allows you to combine multiple private student loans into one, or refinance a single private student loan from another lender.In some cases you may be able to lower your interest rate and save money over the life of your loan.