Consolidating private student loan debt
The following table illustrates how a weighted average works.
Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income-driven repayment plan (where the payments are based on the income of the borrower).
We start by discussing the basics of student loan consolidation and refinancing, and comparing the benefits and drawbacks of federal and private consolidation loans.
We then detail a step-by-step guide to using and choosing consolidation loans.
A federal student loan consolidation calculator provided by US Bank was used to calculate the weighted average.
Borrowers who are out of college or are attending classes less than half-time can consolidate their federal student loans.