Is consolidating my student loans a good idea
If you assume that what you know about one type of loan applies to all the others, you may wind up with some serious misconceptions.Thankfully, there is an option available to those that want to avoid the extra cost of capitalization: you can make “interest-only” payments while you are still in college.There are two basic types of private student loans: variable rate and fixed rate.*Reflects the current rates for disbursement between July 1, 2016, and July 1, 2017 **Refers to whether the interest is paid by the government while the student is enrolled in school The first, most important step is to fill out a FAFSA and deliver it to your school’s financial aid department.
Whether you know a lot or a little about student loans right now, when you finish reading this guide you should be ready to make the best possible decisions as you pay off your student loans.
If all of your loans fall into that category, then you don’t need to worry about paying off your student loans until you finish college (it’s still wise to spend some time learning about the process of repayment, however).
If your loans aren’t all subsidized, then all the interest accrued on any unsubsidized loans while you were in college will be “capitalized” (added to your principal) when your payments become due.
Note: Many students graduate college with several different types of loans.
It’s important to handle each loan separately and understand the nuances of each.