What are the advantages of direct loan consolidation?
A. In addition to allowing students to refinance their loans at better rates, consolidation may deliver other benefits depending on the borrowers’ circumstances. Borrowers can eliminate the need for dealing with multiple lenders, extend their repayment period and calculate loan payments based on a percentage of income. Recent graduates should consider consolidating during their in-school or in-grace periods to lock in an even lower interest rate over the life of their loan. Consolidating during the in-school or in-grace period can mean a fixed rate of 3.525% over the life of the loan. Students who consolidate while in-school are eligible to lock in a 3.525% rate and retain their six month grace period. Q. What is the difference between fixed and variable rates? A. A fixed interest rate is a rate that stays the same for the life of the loan. A variable interest rate is a rate that changes periodically. For example, the interest rate might be pegged to the cost of US Treasury Bills and b
