How Much Can You Save If You Consolidate Your Student Loans?

HOW MUCH WILL YOU SAVE BY CONSOLIDATING YOUR LOANS?

When you consolidate student loans, you will be combining all of your previous loans. By doing this, you will only be paying interest on one loan instead of on many. This can mean big savings each month! Over time, you will save a lot more than if you didn’t consolidate. The actual monetary amount will vary according to the loan amount and the time it will take to pay off the loan, but those who consolidate student loans will see a much lower interest. This interest rate will not change over the life of the loan.

While interest rates for student loans can never exceed 8.25%, the percentage has gone up over the years. Typically, students can now expect to pay between 4-4.25% interest each month. Imagine paying this amount of interest on each of your loans? If you consolidate your student loans, you will pay this percentage for one loan. You may be able to earn a lower interest rate if you shop around for a lender. There are lenders available online and at your college’s financial aid office.

In order to determine your monthly payment, visit your lender’s web site or any student loan consolidation web site. They should have payment calculators that will help you see your savings.  Clearly, it pays to consolidate!