Note: ScholarPoint's Application
and Consolidation Calculator perfom these calculations for you.
Be wary of any lender who says
they can save you money by offering you a lower base interest rate
than your current loan—they can’t. The rates for student loan
consolidation are dictated by the Federal Student Loan Consolidation
Program. However, there are two ways that you can lower your
consolidation interest rates.
1. Consolidate before your grace period ends
Your
consolidation rate is determined by the current interest rate of
your Federal Student Loans. What many graduates don’t realize is
that the interest rate on their loan during the grace period is
0.60% lower than when the loan moves into repayment status. This
means that you can enjoy the benefits of lower interest rate
payments for up to 30 years just by refinancing during within the
first 6 months after graduation.
2. Shop around for borrower benefits
Where lenders do differ, is in the money saving incentives they
offer borrowers. One student loan refinancing company may offer a
discount for on-time payments. Another might offer a percent
reduction for automatic withdrawal of payments. ScholarPoint offers
all borrowers generous money saving incentives for both on-time
payments and auto pay.
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