Consolidating student loans in canada
Check out the official government site for all the details on eligibility.
If you're consolidating with a private lender, consolidating your loans means combining and refinancing your loans into one new private loan.
You'll also preserve the robust benefits of federal student loans, such as Income-Based Repayment, that private lenders don't offer.
However, you'll need to carefully consider your personal situation in order to make this decision - since the interest rate you'll receive is a weighted average among all your existing loans, rounded to the nearest 1/8 of a 1%, you might actually raise the overall amount you pay in interest.
Here's the rundown you need to determine whether student loan refinancing and consolidation is right for you.
First, what does consolidating student loans really mean?
They also make sense if you want to make one monthly payment over a fixed term, helping you budget over the long term, without having to worry about multiple payments and accumulating interest. Borrowell claims it saves the average customer ,300 in credit card interest per loan – validating Canadians are finding value.
These personal loans are designed for customers with excellent, good, average and poor credit scores.
Personal loans are especially convenient for larger borrowing sums, a short term cash crunch or reducing current interest rates.
However, Brian Mc Bride, an associate producer at CNN and a 2010 graduate out of Arizona State University, managed to pay off ,500 in debt in just two years. Mc Bride owed ,500 in student loan debt and ,000 for his 2003 Honda Civic.
He said he tackled his car loan first to pay down a higher interest rate during a six-month grace period following graduation on his student loans.
Next, why would you want to consolidate student debt?
If you choose the Federal Direct Consolidation Loan program, you'll end the headache of managing multiple bills each month.