Essentially what happens when you consolidate BANK is that all of your original loans are paid off by your lender and replaced with a single new loan with new terms.
STUDENT LOAN And you can often get a lower monthly payment 0, 10 YEARS, PRINCIPAL, INTEREST because you will have a longer repayment period— 0, 25 YEARS so there are some trade-offs to keep in mind.
@4.15% INTEREST In this case, that’s four point two five percent.
$81,250 TOTAL, $20,250 MORE $61,000 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.
BANK Entering these numbers into the loan calculator LOAN CALCULATOR, YOUR LOANS SUBSIDIZED LOAN, UNSUBSIDIZED LOANS at gov— CALCULATE, $500/MO on a standard ten-year repayment plan, you’re going to be paying a little over five hundred dollars a month.
STANDARD 10-YEAR REPAYMENT PLAN $145/MO, $200/MO, $155/MO $500/MO Over ten years, you’ll pay about eleven thousand dollars $11,000 INTEREST in interest on your original principal of fifty thousand dollars.
Consult with your own financial professional when making decisions regarding your financial or investment options.
Under your new loan terms, your loans will be consolidated into one fifty thousand dollar loan— ,000 FEDERAL LOANS and you’ll have one new fixed interest rate, 15000 X 3.5, 20000 X 4.0, 15000 X 5.0 which is determined by taking the weighted average of the interest rates on your previous loans, and rounding up to the nearest 207500 ÷ 50000 one eighth of one percent.
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,000, ORIGINAL PRINCIPAL Now let’s say you want to consolidate these loans.