So you have finished college and decided to consolidate the loans into a monthly payment. Great! Consolidation will help you pay off your student loans, while manageable monthly payments. Next it is time to make a decision about student loan consolidation rates.
When it comes to student loan consolidation rates, there are two ways you can choose from which both have advantages and disadvantages. You can either have a fixedinterest rate or a variable or adjustable rate. Fixed rates are great because they are pretty much set in stone. This takes the guess work out of what your loan payment will be each month.
It will always be the same so you don't have to worry about any bad surprises. That's the upside when it comes to fixed interest rates. However, this same thing can be a downside. Let's say interest rates are cut significantly. If you choose a fixed rate you won't be able to benefit from the Interest rate cut.
In addition, you can also choose a variable or adjustable rate student loan consolidation. This rate will fluctuate as the Federal rate changes. In some cases this can be great for you, because the amount could fall significantly. However, by the same train, it is also possible that your payment could also be significantly increased if the federal-up prices.
Basically, it's really a gamble, if you chose a variableInterest rate. It might work out great for you but for the same reason, it could be a bad decision.
Ultimately, when deciding on student loan consolidation rates, it comes down to what you consider most important. When you are ready, a little to try a large set, why not get a variable interest rate play. However, if you need a consistent rate, without any surprises, it is better to go with a fixed exchange rate.
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