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Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » If I can afford my student loans does it pay to refinance or consolidate?

If I can afford my student loans does it pay to refinance or consolidate?

I have about $16,000 in public and $5000 in private loans. I can afford my monthly payments. My interest averages around 5.5%. Will I actually save money by refinancing or consolidating. I don’t really understand it. From what I understand it is really for people who can’t make their monthly payment and want to lower it and extend the term on the loan while paying more interest overall. Is that correct?

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2 Responses to "If I can afford my student loans does it pay to refinance or consolidate?"

  1. My name is Norris, Chuck Norris says:
    Refinancing and consolidating makes sense if you are obtaining a lower rate (< 5.5%)

    Consolidating is recommended when you have multiple debts with different and highest interest rates and or different pay off periods. You consolidate all those debts into a single (and lower interest) payment with a fixed term.

  • Anonymous says:
    First off, you can’t consolidate private and federal loans. Also, consolidation is almost never a good idea because it will lengthen the time you pay off your debt. So even if your rate is lower, you pay on it for 20 years (for example) instead of the 10 years left on the loan you haven’t consolidated.
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