Consolidation Options and Managing Your Loans
Consolidation Loans
Consolidation loans allow borrowers to combine eligible education loans into a new loan. Typically, these loans will have a lower monthly payment, but a longer repayment term than the original loans. Consolidation loans should be considered carefully. Generally they are determined by weighted interest, meaning that an average rate is determined between the higher and lower interest rates on all loans a borrower has taken. Borrowers should never combine federal and private loans together, and should be sure to read the fine print on any loan before signing.
Repaying Student Loans
For many borrowers, repayment on loans will not begin until after graduation. However, it is important for borrowers to know their responsibilities when it comes to student loans. Some loans require interest-only payments while in school or immediate repayment. Never take a loan without understanding exactly when you will recieve your first bill. As a matter of good financial management, do your best to understand the terms and conditions of your loans. If you don't understand them, contact your lender. Remember, as a borrower, you are responsible for repaying their loans fully and ontime.
For More Guidance
SallieMae's website offers some guidance on responsible borrowing, click here. If SallieMae is not your lender, or if you are confused to which loans you have taken, visit the National Student Loan Database at www.nslds.ed.gov. You will need your federal PIN number, that you recieved when you completed your FAFSA, in order to access the information on this site.
Repayment Caculator>
The loan repayment calculator will help student loan borrowers caculate monthly Principal and Interest payments under the different payment plans. Click here for the repayment calculator.