Best answer from question by naingzaw:
Answer by Josie826
You pay back the loan at the APR that you took the loan out in. So if it was 6.25, you pay it back at 6.25.
Best answer from question by Jason E:
Answer by Anonymous
you will never be able to consolidate the federal and the private loans together. So your options are limited. This is why private loans are evil and should be avoided at all costs. Your better option is to get a second job, or to ask the spouse, if you have one to get another job!
Best answer from question by redsoxchick:
Answer by Found-1
It seems to me the purpose of a consolidation loan is to combine several loans into one… but if you only have one loan to begin with, you wouldn’t be able to consolidate them.. suppose it wouldn’t hurt to ask around.
Some companies DO lower the interest rate based on payment history. Mine were federal loans that were sold to Sallie Mae when i graduated. When I signed up for their Auto Draft payment feature they lowered my interest rate. I also qualified for a program GREAT REWARDS or something, that reduced my rate again after I had made many payments on time.
Granted I never consolidated my loans, (I don’t understand the whole point of it personally) because the interest rates are usually higher than the federal rates. And you “reset” the time you’ve been paying on them back even farther. But I suppose if you have private loans this might be in the best interest for your wallet. Just remember, consolidated loans don’t qualify for any loan forgiveness programs that federal loans qualify for.
Don’t make the mistake and change it into a non-student loan, loan. (I hope that makes sense) because then you wouldn’t even be able to deduct the interest on your taxes.