Consolidating student loans lowest rate
Therefore, even though your interest rate is the same or lower, you'll likely end up paying more interest.
You should be wary if a private lender promises to dramatically lower your interest rate by consolidating your federal student loans.
There are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits).
The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit.
If you are a dependent student whose parents are ineligible for a Direct PLUS loan, you may be able to receive additional Direct Unsubsidized Loan funds.You can consolidate all federal student loans and most private student loans.The amount of money you are eligible to borrow depends on your college costs for a particular year.Guaranty agencies pay off the lenders when borrowers default, and in turn, are reinsured by the Department of Education.
The National Council of Higher Education Resources (NCHER) also has a fact sheet with a list of guaranty agencies.Student loan consolidation is a process through which you take out a new loan, which is then used to pay off your other existing student loans.