Consolidate Federal Student Loans Lower Interest Rate - Only PenFed offers spousal student loan consolidation, but you also have the option of refinancing with your spouse as a cosigner.
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Consolidate Federal Student Loans Lower Interest Rate
According to EducationData.org, more than 43 million adults in the US have student loan debt, so if you're married, there's a good chance that both you and your spouse have student loan debt. Considering that a typical graduate has eight to 12 different loans, a married couple can have 24 loans to manage, which can make the idea of consolidating student loans with your spouse attractive.
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If you consolidate your debt, you'll be left with just one loan to manage and one monthly payment to remember. As of 2021, PenFed Credit Union is the only lender that allows couples to consolidate their loans together. But you have other options.
Yes, if you refinance through a lender like PenFed, you can consolidate your student loans with your spouse's loans. Your spouse can also consider refinancing their student loans with you as a cosigner (or vice versa).
Please note: In 2006, the Department of Education ended the Shared Loan program. This means that married couples with federal student loans cannot consolidate those loans through the government.
The only option to combine federal loans with your spouse's loans is through private student loan consolidation, which is very different from federal consolidation. If you refinance federal student loans or consolidate them with your spouse's loan, you are replacing your federal student loans with private student loans. This means you lose access to federal student loan repayment options and protections, such as income-based repayment plans and student loan forgiveness programs.
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Here are some important differences to consider before deciding whether to consolidate or co-sign student loans with your spouse:
With spousal loan consolidation, the lender considers your combined income and debt and determines your interest rate based on your high credit score and education level. This may make it appropriate if you are a stay-at-home spouse, earn significantly less than your partner, or did not graduate from college.
If you decide to refinance your co-pay loans, you have many lenders to choose from. Also, some lenders offer a cosigner release option, which means you can be released from the loan after making a certain number of consecutive payments.
If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you and your spouse. makes it easy: you can compare your advance rates from multiple lenders in two minutes.
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Several lenders offer the possibility of a co-payment exemption. This can be useful if:
To qualify for a cosigner exemption, the principal borrower is usually required to make consistent and timely payments over a specified period of time, usually one to four years, depending on the lender. They must also meet the subscription criteria independently.
If you want to refinance your student loans with a lender that offers a free cosigner option, be sure to consider the number of lenders first. That way, you can find a loan that works best for you and your spouse.
Lenders are rated by our editorial team with the help of our credit operations team. Qualifying criteria for lenders includes 78 data points that include interest rates, loan terms, transparency of eligibility requirements, payment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
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The amount you can save by refinancing your student loan depends primarily on the interest rate you qualify for, as well as the repayment term you choose. Generally, you need good and excellent credit to qualify for the lowest interest rates; A good credit score is generally considered to be 700 or higher.
You can also keep your total interest costs down by choosing a shorter term. In addition, several lenders offer lower rates to borrowers who choose shorter terms.
For example: Borrowers who refinanced their student loans through the marketplace between November 1, 2019 and December 1, 2020 and chose a shorter repayment term were projected to save an average of $16,943.
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If you refinance your student loan with interest, you can save, pay an extra $ per month, and pay off your loan before . The total amount of the new loan will be $.
1$16,943 Deposit Waiver: The Deposit Report assumes that consumers who are screened will make full and on-time monthly payments in accordance with the terms of their notes over the life of the loan. Actual savings may be higher or lower. Average savings account of $16,943 based on (1) information users shared about their original loans (such as loan balance, term, and payment rate) and account opening between November 1, 2019 and December 1, 2020; and (2) actual loan terms for the same users who refinanced student loans with a repayment term of the weighted average of the remaining months of their previous loan (') until they were fully repaid, using data that users provided with . This includes borrowers who have refinanced a loan with a similar or longer term or reported loan terms that are outside of normal user experience, including: (i) any loan term less than one (1) year or more than twenty years; excludes five (25). remaining years until refinancing; (ii) monthly loan payments of more than $5,000 per month prior to refinancing; and (iii) any existing loan amount (before refinancing) that differs by more than five (5) percent from the loan amount at the time of refinancing. Our calculations do not take into account variable factors such as the borrower's potential ability to repay the loan, variable interest rates, defaults, defaults, defaults, late payments or prepayments. Keep in mind that your actual savings may vary based on interest rates, balances, loan terms, credit scores, and other factors.
Angela Brown is an authority on student loans, personal finance and real estate and a contributor to . His work has been featured on Fox Business, LendingTree, FinanceBuzz, and Yahoo Finance. We have student loans. In fact, there are 44.5 million other people in the same boat in the United States; and in total, we owe $1.5 trillion. The six-month grace period after college gives us time to figure out how we're going to pay back the money we borrow. So we look at our student loan bills and our jaws drop.
Most of us will have several smaller loans from different servicers with our student loans. Maybe a $1,000 loan here and a $2,500 loan there. Different credits are added after each semester. Some of us may have private loans in addition to our federal student loans. This means that we will have many payments each month.
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In addition, each loan has its own interest rates, repayment terms and minimum payments. The process of figuring out all these loans and making sure we pay them back on time can be… well, it's daunting. So what can we do about it?
One option that can ease the pain of paying off our student loans is to consolidate our loans. We can apply for loan consolidation through Federal Student Aid, which guides borrowers through the process at no cost. However, before we start consolidating our debts, we need to understand the pros and cons of doing so. Here's what you need to consider before deciding if this option is right for you:
Whether to consolidate student loans depends on individual circumstances and goals. Before you make a decision, do your research and review the terms and conditions of the options available. Talking to a student loan counselor can also help. For many, debt consolidation helps them manage their current finances and pay off their student loans in one affordable monthly payment.
Want to learn more about student loan forgiveness and student loan consolidation? Contact Marshall, your Student Loan Coach at [email protected] for information. You are here: Home / US Student Loan Center / Student Loan Consolidation / Student Loan Consolidation | When and why to combine
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Many college graduates wonder if going to school is worth it given the economic trends of the last 25 years. In the past, a college degree almost guaranteed a good job.
Now, graduates are eager to start their careers and sometimes decide to get a foot in the door.
Even though you don't have one, you still owe money
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