Conslidating student loans
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BANK Entering these numbers into the loan calculator LOAN CALCULATOR, YOUR LOANS SUBSIDIZED LOAN, UNSUBSIDIZED LOANS at gov— CALCULATE, 0/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 5/MO, 0/MO, 5/MO 0/MO Over ten years, you’ll pay about eleven thousand dollars ,000 INTEREST in interest on your original principal of fifty thousand dollars.
,000 FEDERAL LOANS Fifteen thousand dollars in subsidized loans SUBSIDIZED, ,000 PRINCIPAL at a three point five percent interest rate, @3.5% INTEREST and then two different unsubsidized loans: UNSUBSIDIZED a loan of twenty thousand dollars ,000 PRINCIPAL with a four percent interest rate, @4% INTEREST and a loan of fifteen thousand dollars ,000 PRINCIPAL with a five percent interest rate.
@6.5% INTEREST RATE If you’ve just left school, CREDIT SCORE 550 you probably haven’t had the chance to build up a good credit history yet, so with private consolidation PRIVATE LOAN CONSOLIDATION LOWER MONTHLY PAYMENT you might get a simpler, lower monthly payment, but you could end up paying more in combined interest.0/MO That’s a lot less than the five hundred dollars a month STANDARD 10-YEAR REPAYMENT PLAN 0/MO you would have spent on a standard ten-year repayment plan.But, paying two hundred seventy dollar per month for twenty-five years means you’ll be paying a total of about ,250 TOTAL eighty one thousand two hundred fifty dollars over the life of your loan.DEFERMENT OR FORBEARANCE Now, if you have private student loans, STUDENT LOAN PRIVATE CONSOLIDATION LOAN, BANK you also have private loan consolidation options.PRIVATE LOAN CONSOLIDATION They work much like a federal consolidation loan, ,000 PRINCIPAL, @5% INTEREST ,000 PRINCIPAL @ 5.8% INTEREST except they also take into account ,000 @ 6.75% INTEREST ,000 PRINCIPAL @ 7% INTEREST your credit score when determining your interest rate.MORE COMBINED INTEREST But if you happen to have a steady job and have built up a good credit score, you might be able to get a lower interest rate from another lender than your current private loans, @5.4% INTEREST so it might be worth looking into.