Consolidating federal student loans lower interest rate

You are eligible for a larger loan if you are financially independent.

If you’re financially dependent but your parents are ineligible for Parent PLUS loans, you’re permitted the same maximum loans as if you were independent.

Most students receive loans from a different borrower every year, if not every semester, so it is commonplace to have 8-10 student loan payments due every month when you finally graduate.

You can simplify the repayment process by applying for a Direct Consolidation Loan, which can best be defined as: one payment to one servicer, once a month.

The government pays your interest for you while you’re in school.

Subsidized loans are reserved for students who can demonstrate a financial hardship.

Freshmen can borrow up to $3,500; sophomores $4,500; and third-year students and beyond can borrow up to $5,500 in subsidized loans.

You cannot accrue more than ,000 in subsidized Stafford Loans throughout your undergraduate studies.There are two types of Stafford Loans: subsidized and unsubsidized.The type helps determine your interest rate and maximum loan amount.If you have an unsubsidized loan, you’re responsible for paying off all the interest.In 2017, interest rates were fixed at 3.76% while you’re in school, but payments are typically deferred — or postponed — until after you graduate. Your annual Stafford Loan limit for unsubsidized loans ranges from ,500 to ,500, depending on your year in school and whether you are claimed as a dependent on someone’s tax return.Private student loans have some conditions and terms — very good credit or a co-signer needed – that make them difficult.

Tags: , ,