FAQ about loan

Q: What are the benefits of consolidation?
A:
1) lenders offer incentives for consolidating loans with them as listed above.
2) consolidation loan interest rates are fixed at the rounded weighted avg of your variable rate loans. Good to lock in the low rate loans before they increase in July.
3) at the time of consolidation it's possible to choose new(longer) repayment plan which will reduce monthly payments and allow you to take advantage of low student loan interest rates. (make smaller payments on SL and use the money to pay off higher rate loans)

Q: Is consolidating your student loan the same thing as refinancing?
A: sort of, but not quite
- you can refinance any (one) mortgage; for student loan consolidation often more than one loan required.
- when you refinance you can get current lowest rate, when you consolidate student loans the rate stays the same (it's the avg of all yr loans) but you may be offered a rate reduction or other incentive.
- when you refinance you may have to pay a closing cost, when you consolidate student loans you don't pay anything.
- you can refinance as many times as you like, but in many cases you can't consolidate loan second time unless you have another SL.
- you can refinance with the same company several times, but you can't consolidate several times with the same loan provider.