Debt consolidation loan calculator full#
Debt consolidation loan calculator free#

Instead, the process extends your repayment period, thus lowering your monthly payment but increasing the total interest you’ll pay. Although consolidation simplifies multiple loans into one streamlined payment, it will likely increase the amount of interest you pay over time-meaning you can’t save money through consolidation. Student loan consolidation enables borrowers to combine multiple federal student loans into a single federal student loan.

Debt consolidation loan calculator full#

If you already have student loans in default, loan consolidation can help you pay off that loan if you agree to repay the new loan under an IDR plan or make three voluntary, on-time and full monthly payments on a defaulted loan before consolidating it. An alternative to loan rehabilitation.When completing your consolidation application, you’ll be asked to select a servicer for the new loan. If you’re having trouble with your current federal student loan servicer, consolidation gives you the flexibility to choose a new one. What’s more, borrowers who would not otherwise be eligible for Public Service Loan Forgiveness (PSLF) can qualify by consolidating their federal loans under a direct consolidation loan. Consolidating federal loans enables borrowers to choose from a number of income-driven repayment (IDR) plans. More repayment options and borrower protections.If you’re currently making student loan payments to multiple servicers, consolidation can streamline this process so you only have to pay off one loan. Keep in mind, however, that you’ll pay more interest on your loan in the long run. Student loan consolidation extends the repayment period to up to 30 years, thereby lowering your monthly payment. Student loan consolidation may be a good option if you want: It’s also a great way to access additional repayment plans and borrower protections, rehabilitate a defaulted loan or otherwise ease the stresses of debt repayment. For borrowers with federal student loans, consolidation can help lower and simplify monthly payments. Refinancing, on the other hand, is available to borrowers of both federal and private loans. In general, student loan consolidation is only available for federal loans.

Debt consolidation loan calculator free#

Submitting an application and consolidating your debt is always free of charge. The interest rate on your consolidation loan will be a weighted average of the rates on your existing debt. Most federal student loans are eligible for consolidation, but private student loans are not. Borrowers who have defaulted on one or more federal student loans can use consolidation as an alternative to loan rehabilitation.

Department of Education’s Federal Student Aid office, borrowers can streamline the bill-paying process, lower monthly payments and find a repayment plan that fits their needs. Student loan consolidation is a way to combine multiple federal loans into a single direct consolidation loan.