[Flash intro video] Now as you can see, keeping track of these loans might get complicated—especially if you’re making payments to different loan servicers.Entering these numbers into the loan calculator at gov—on a standard 10-year repayment plan, you’re going to be paying a little over 0 a month.
After consolidating his or her loans, a student borrower will have just one monthly payment and just one loan balance to maintain.The decision whether or not to consolidate can be tricky.Let’s look at an example of getting a federal consolidation loan—you can also get a private consolidation loan if you have private loans, but we’ll get to that in a minute. Fifteen thousand dollars in subsidized loans with a 3.5% interest rate, and then two different unsubsidized loans: a loan of ,000 with a 4% interest rate, and a loan of ,000 with a five percent interest rate.[Show example, with interest rates.] If you’re not sure about the differences between unsubsidized and subsidized loans, we cover this in another video.This information may be used to deliver advertising on our Sites and offline (for example, by phone, email and direct mail) that's customized to meet specific interests you may have.
If you prefer that we do not use this information, you may opt out of online behavioral advertising.If you opt out, though, you may still receive generic advertising.In addition, financial advisors/Client Managers may continue to use information collected online to provide product and service information in accordance with account agreements.So while simpler and lower monthly payments might give you some relief in the present, the trade-off is that it can cost you a lot more over time. This means that you may miss out on some of the repayment benefits you might have been eligible for on your previous loans, like interest free deferment on subsidized loans or loan cancellation for special circumstances.But if you do decide to consolidate your loans, it's good to keep in mind that you always have the option of paying more than your monthly payment, which can save you money over time, while still having the flexibility of not having to make the higher monthly payments that you would have on a standard 10-year plan. If you're struggling to make payments on your original loans, you might consider repayment options other than loan consolidation, like an income-based repayment plan.But by comparing the pros and cons of each repayment plan available, you’ll be able to find out which option is right for you.