Some lenders offer an interest-rate deduction if you automate payments or consistently pay on time, and you probably don’t want these advantages to disappear (unless the interest rate is that much lower on your new loan).Pro: Your rates may be lower (or at least not higher).
Your credit score will play a major role in determining whether a consolidation loan is right for you.
You can check two of your credit scores for free on to see where you stand.
Though nearly all borrowed money comes with interest, part of the appeal of refinancing is that you can save money by paying a lower interest rate on average for all your loans.
It’s a good idea to ensure that your new, consolidated loan features lower interest rates than your current loan.
While you can only be taxed up to a certain amount, it can lead to serious savings.
Lumping your payments into one sum won’t affect your ability to claim the tax deductions.
Pushing the limits of your budget to get rid of your student loans forever can leave the rest of your finances in disarray.
It’s important to think carefully before erasing your student loan debt and losing the financial flexibility to use that money elsewhere.
Make sure you are making payments in a smart, manageable way — whether that’s early or right on time.