# Student Loan Consolidation: What Do the Numbers Mean?

Student Loan Consolidation is when you with a lender to combine two or more student loans together so that you only have a lower payment each month instead of several payments you would normally do.

Should decide to make your loans you will notice that there are many student loan consolidation programs to help.

Before you decide on your student loan consolidation help, you should consider how the group of loans.

If you are one of those people looking for federal student loan consolidation you want it, regardless of private student loans. The reason is that it breaks at the federal level, student loans, which are incompatible with private student loans, and if you just lump them all together, then these offers are no longer available.

The next thing you want to look at before you choose a place to use is the student loan consolidation rates available. Remember, you want your payments to reduce, not increase.

If you look at the interest rates available you do not want to forget that the prices for your consolidation, your weighted average of the current prices of the current interest rates. It is usually rounded to the nearest eighth (1 / 8) of one percent, and finally the peak at about 8.25 percent.

If all your interest rates are different then the interest rate on your student loan consolidation will be between them. Because of the multiplication of the individual amounts of the loans with the appropriate interest rate, then the sum of each of these together, and finally dividing that total by the sum of each of the original loan (without the rate) together. For example, a loan of \$ 10,000 at interest rate of 5%, two sum was \$ 5,000 at 6.25% interest rate, credit, and three was another \$ 5,000 at 5.75% interest. First, multiply the credit and interest rates: 10,000 *. 05 = 500; \$ 5,000 *. 0625 = 312.5; \$ 5,000 *. 0575 = 287.5. Next, add the totals together: 500 +312.5 +287.5 = 1100. Now add the totals of the original loan: \$ 10,000 + \$ 5,000 + \$ 5,000 = \$ 20,000. And finally, divide the two sums together: 1,100 / 20,000 =. 055. This means that in this case, the interest rate on the consolidated loan would be 5.5%.

If someone promises that interest rates will be lower than what you pay now, they lie. There will be less than your maximum, but it will also be higher than your lowest rate. During this process, you should always keep in mind that the amount of interest you pay at the end will be maintained throughout the time you pay your loans.

If you get a student loan consolidation, you will notice that there are no fees or anything to pay. It is only a slight increase in interest rates. For the few who charge fees, they will never call them, if they do, it’s a fraud.