Best option for consolidating private student loans

09-Aug-2020 01:43 by 9 Comments

Best option for consolidating private student loans

If you’re a graduate student, you have a higher annual limit of $20,500.In total, your undergraduate and graduate Stafford Loans cannot exceed $138,500.

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This type of loan, which is funded with government money, comes with low interest rates and favorable repayment options. They can be consolidated upon graduation, which is an important factor when it comes time for repayment.There are two types of Stafford Loans: subsidized and unsubsidized.The type helps determine your interest rate and maximum loan amount.If you have an unsubsidized loan, you’re responsible for paying off all the interest.In 2017, interest rates were fixed at 3.76% while you’re in school, but payments are typically deferred — or postponed — until after you graduate. Your annual Stafford Loan limit for unsubsidized loans ranges from ,500 to ,500, depending on your year in school and whether you are claimed as a dependent on someone’s tax return.If you’re a medical student, you have the highest limits.

You may borrow up to ,500 annually and 4,000 in total.Some students may also be eligible for private loans or health professional loans, depending on their credit standing and area of study, respectively.If the combination of paying off credit card debt, auto loans and student loans becomes overwhelming, a debt consolidation plan could ease your financial difficulties.Those four loan programs account for 80% of the federal loans made for college students.For many people, a college education is impossible to obtain without borrowing money to pay for it.Stafford Loans are more common than Perkins Loans, the other type of federal student loans.