Pros cons consolidating your debt

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The results in the example demonstrate why this is important.

In several instances, your monthly payment could be lower (sometimes significantly lower), but you will pay thousands of dollars more in interest. You’ll need to have information about each of your loans, including the loan code, loan account number and estimated payoff amount.

You may be able to save money and lower your monthly payment by refinancing your student loans with an interest rate reduction.

However, when you refinance federal loans, they’ll become private loans and will no longer be eligible for federal programs, including income-driven repayment plans and forgiveness programs.

If you’re choosing the standard or graduated plans, your repayment term will depend on the total balance of the loans you’re consolidating, plus the balance of other loans you listed.

Your monthly payments will be fixed on the standard plan, or start small and slowly increase on the graduated plan.

If you’re consolidating loans that are in a grace period, you can ask the servicer to delay processing your request. Once you’ve filled in all the required sections, you’ll have to sign and submit the application.

Contact the servicer if you have questions about your application after submitting it. News recommends the following five top performers based on how they can address certain borrowers’ needs and their overall performance compared with other lenders.

No private student loan refinancer is perfect for every borrower. Overview: Common Bond was started by three Wharton MBA graduates in 2011.

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