Learn more A fixed-rate student loan guarantees a single interest rate that does not change over the lifetime of the loan.Fixed-rate loans often have higher rates than the introductory rates on variable loans.When you apply, most banks and lenders will look at your credit score, annual income, savings, and college degree type (or certificate of enrollment if still in school).
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However, borrowers have peace of mind knowing their monthly payments will always be the same amount.
Learn more"Term" refers to the length of the loan, typically in years.
And I am going to be straight with you: Private college loans are not ideal at any time, especially now, when many lenders have left the student loan business or curtailed their lending in the wake of the financial crisis. With a private loan consolidation, your FICO credit score will determine both whether you get a loan and what the initial rate will be.
I contacted student loan guru Mark Kantrowitz at Fin Aid.org, who says just three lenders still offer consolidation: Chase, Student Loan Network, and Wells Fargo. You should also know that there are no fixed rates on consolidated private loans; your interest rate will probably be tied to a benchmark like the prime rate, so when that rises, so will the rate on your loan.
Finally, if you have a solid job and a solid credit score, think about looking into a personal loan at a bank or credit union.
You might not be able to score a deal for the entire amount, but if you can get a fixed-rate personal loan to pay off some of the variable-rate student loan debt, that will offer you more stability.
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Finding the right bank to refinance or consolidate your student loans is confusing.
This is unlike a "hard" credit check, which may impact an applicant's credit.
The average amount borrowers have saved by refinancing with this lender.
Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation.