How Does Student Loan Consolidation Work?
Jul 04, 2009 in
Student Loans
I am wondering how student loan consolidation works,,, once i consloidate my loans do i get a sum of cash? i know i have gotten offers that say up to $2000 now if you consolidate. does that mean i get $2000 for myself, or do they take that off the ammount of the loan.
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2 comments
greentad on July 4, 2009 at 8:33 am
Generally, a consolidation loan lumps all your student loans into a new loan, with up to 30 years to pay back and a fixed interest rate. It really makes it easy if you have student loans scattered across different lenders/servicers.
The key word in your statement is ‘up to $2000′, if you have a lower balance, you probably will not get that much as a credit. Yes, you would get a credit, not cash back.
And if you do get ‘up to $2000′, believe me, you will pay for it eventually. There’s no such thing as a free lunch (imo).
Veritas et Aequitas () on July 4, 2009 at 2:17 pm
You don’t get $2000 off, you probably just save that much in interest by consolidating. You are basically consolidating to get a lower fixed rate on your loan, that’s the benefit.