Info Rate Changes - So What Does That Mean?

If you want to consolidate your student loans - what does the new, slightly increased, loan rates mean?

Essentially it will mean little, if any, change in the rate of new consolidations requested, most probably, so that will be a relief for some in the student loan financing community.

Really because the rate increase is so minuscule, consolidating may or may not be in your best interest Your situation needs to be considered, so I don't make this as a blanket statement. A slight increase in student consolidation rates may prod you into action. it may have an effect upon you need to keep things under control That's for you to consider.

Repayment times vary with Federal student loans and Consolidated Student Loans.

Federal have a repay term of only 10 years. If you can’t afford to repay your say, Stafford Loans, you can consolidate them and all these loans will become one loan. Good in that you're dealing with just one company.

The difference is that you can have up to a 30 year loan repayment term.
So if you or your child has a number of 10 year loans, and you consolidate you now have longer to pay it back.

Being a bit broke or challenged financially isn't so much of a problem. You will have longer to pay it back, but you’ll end up paying more money in the log run unfortunately.

Should you have used up all your forbearances and deferments on your federal loans, they renew when you consolidate and you can go into forbearance or deferment again if you qualify.

So, essentally advice might be to take a short term view if at all possible, but if not, a long term view towards repayment will still provide you with a 'do-able' scenario. Or start short, go long, then when things start to roll along well, cut short your loans by paying them out early.