This can be particularly helpful if you’re a new graduate who is currently earning an entry-level salary, but you foresee yourself earning more in future years as a result of raises and promotions.
You may have been wondering, “Should I consolidate my student loans? Here are a few of the benefits of consolidating your loans. This If rates have dropped since you originally borrowed your loans, or if your financial situation and credit score have improved, lowering your interest rate could save you a decent chunk of change — and may also allow you to pay your loans off faster.
Change your variable interest rate loan to a fixed-rate loan.
Some spend more money on college debt than they pay for groceries, utilities, or in some cases, even rent.
Many people pay hundreds of dollars each month on college loan repayments.
But, as Mark Kantrowitz warns on USA TODAY, “variable rates have nowhere to go but up.” If you sign up for that low, low rate now, you risk committing yourself to rising rates for years to come. Typical student loan repayment terms range from 5 to 20 years.
By extending the repayment term, you can significantly reduce the amount of money you’re required to pay each month.