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Here are 3 of the most Frequently Asked Questions regarding Consolidating Student Loan (as well as the answers, we figured you’d want those too).
Does extending the repayment period increase total interest payments?
Yes, since smaller amounts are made over a longer period of time, but one can save on total interest payments because are no prepayment penalties for accelerating repayment it is then possible to pay off the loan in a shorter period of time.
Can parents consolidate their Federal PLUS Loans with their children’s student loans?
No, because all student loans must be under the same borrower's Social Security Number.
How are interest rates on student loans determined?
Student loans interest rates are determined by taking a weighted average of the interest rates on all the loans being consolidated, then rounding up to the nearest 1/8 of 1% or 8.25%, whichever amount is the lesser.
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