Ask Kantro: Does Consolidating Student Loans Save Money Like a Refinance? - Fastweb
Ask Kantro: Does Consolidating Student Loans Save Money Like a Refinance?
Mark Kantrowitz / Publisher of Fastweb and FinAid
May 16, 2011
I have a question concerning consolidating my federal loans. I have some that are subsidized and some that are unsubsidized. Can I combine these at a lower interest rate? I have graduated from college and will soon be starting to pay back my loans. My unsubsidized loans are at 6.8% and subsidized are at 5.5%. I also have many DEAL loans, a total of $25,000. Do you have any suggestions on how I could save on these loans? They are at various interest rates. — Denise G.
Consolidating your federal student loans may streamline repayment by replacing several loans with a single loan and a single monthly payment, but it will not save you money. Consolidation may have saved borrowers money in the past, but it no longer does so......read more...