Us consolidating student loans

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The fixed interest rate is calculated as the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%.Some features of the original consolidated loans, such as postgraduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.In fact, student loans are such a hot topic right now that they are a frequent, if not focal, point of discussion in the 2016 presidential primary debates.

Most federal loans are eligible for Direct Consolidation, including Direct, Stafford, Perkins, and more.As a result, refinancing at a lower rate is often a financially positive one because reducing the rate on your federal student loans could: Before we get overly excited and say that privately refinancing your federal student loans is a "no-brainer," it's extremely important to understand what you are keeping and losing should you choose to stick with those government loans or privately refinance them.The biggest advantage to keeping your student loans with the federal government is repayment-plan flexibility.For more information, visit our Repayment plans section.Close Consolidation can be a good repayment option, but it's not for everyone.

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