Consalidating student loans
Subtract your original fifty thousand dollars, - ,000 ORIGINAL LOAN and you’ll see you’re paying over = , 250 TOTAL INTEREST thirty one thousand dollars in interest, compared to the eleven thousand dollars ,000 TOTAL - ,000 ORIGINAL LOAN you’d pay on the standard ten-year plan.
= ,000 TOTAL INTEREST 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.
,250 TOTAL, ,250 MORE ,000 TOTAL You’ll also have new loan terms.
STUDENT LOAN 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 INTEREST-FREE DEFERMENT DEFERMENT, SUBSIDIZED, 0, 1 or loan cancellation for special circumstances.
Please also note that such material is not updated regularly and that some of the information may not therefore be current.
@4.15% INTEREST In this case, that’s four point two five percent.
@4.25% INTEREST Now, entering your loan information into a loan consolidation calculator, you’ll find that consolidating your loans CONSOLIDATED LOAN REPAYMENT PLAN gives you a new repayment period, ,000 PRINCIPAL, 0, 25 YEARS which is figured based on the amount you owe– the more you owe, the longer this repayment period will be.
,000 FEDERAL LOANS Fifteen thousand dollars in subsidized loans SUBSIDIZED, ,000 PRINCIPAL at a three point five percent interest rate, @3.5% INTEREST and then two different unsubsidized loans: UNSUBSIDIZED a loan of twenty thousand dollars ,000 PRINCIPAL with a four percent interest rate, @4% INTEREST and a loan of fifteen thousand dollars ,000 PRINCIPAL with a five percent interest rate.
@5% INTEREST Now as you can see, BILL keeping track of these loans might get complicated— especially if you’re making payments to different loan servicers.
COM THE MATERIAL PROVIDED ON THIS VIDEO IS FOR INFORMATIONAL USE ONLY AND IS NOTE INTENDED FOR FINANCIAL OR INVESTMENT ADVICE.