When you consolidate privately with the Education Refinance Loan from Citizens Bank, you can consolidate both federal and private student loans into a new loan with your choice of either a variable or fixed rate.
You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. There’s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent.At first glance, variable rates may look appealingly low — 2.25 percent or 3.25 percent — compared to fixed-rate loans that ask for 6–7 percent interest.But, as Mark Kantrowitz warns on USA TODAY, “variable rates have nowhere to go but up.” If you sign up for that low, low rate now, you risk committing yourself to rising rates for years to come. Typical student loan repayment terms range from 5 to 20 years.If you're wondering what you need to know about consolidating student loans, find answers to the questions you have before consolidating in this guide from Citizens Bank.As a borrower, you might have questions about how the consolidation process works. Many people pay hundreds of dollars each month on college loan repayments.At a time when the economy is still in recovery and finding a well-paying job is easier said than done, the results of this debt could be devastating.Refinancing loans through consolidation establishes a new loan with new terms and conditions for the combined balance of your original loans.Consolidation is usually synonymous with federal consolidation, although some private lenders offer consolidation loans as well.Check Federal Student Aid for the consolidation loan types and options available to you.You will have a lot of important financial decisions to make after getting a job, one of which will be paying down your student loan debt.