As to the reasons performed Sallie Mae avoid providing student loan combination?
- Improve repayment terms. In case your monthly payments are too higher, you may choose to re-finance and you will prolong the brand new repayment title toward your loan. As much as https://loanecity.com/personal-loans-al/ possible afford high monthly payments and wish to spend away from the loan faster, you could refinance so you can financing which have a smaller cost label.
Sallie Mae was previously financing servicer for private figuratively speaking and you may government consolidation money, however, stopped offering government integration funds from inside the 2008.
In past times, student loan consumers utilized Sallie Mae’s combination services to mix several federal money to the that Sallie Mae loan. In that way, they may make the most of a predetermined interest and you may a single payment.
But when Sallie Mae divided into a few – Sallie Mae in addition to Navient Agency – it turned a monetary qualities team one specializes in originating private student loans. At the same time, Navient proceeded to focus on servicing national loans.
Consolidation versus. refinancing
Since Sallie Mae no longer offers refinancing or consolidation, federal student loan borrowers can turn to Head Combination Loans from the Department of Education. These loans let you combine several government financing on the one loan with a fixed interest rate and a single monthly payment. It’s important to note that you can’t consolidate private student loans with a Direct Consolidation Loan.
If you have private student loans or a combination of private and federal loans, you may want to consider refinancing your loans into one private loan for a lower interest rate and better repayment terms. (more…)
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