Consolidating student loan rates

Although the terms are often used interchangeably, they are not the same thing.Student loan consolidation and refinancing both result in a single monthly bill, however student loan refinancing could result in significant savings.With RISLA, you will also get these great benefits: (1) Rates reflected include 0.25% discount for paying via automatic monthly payments (ACH). The Annual Percentage Rate (APR) reflects the accruing interest, the effect of capitalized interest, and making equal payments over the term of the loan. This program is limited to the student who benefited from the original loan proceeds that were refinanced.To qualify for the conditional discharge (except for certain veterans described below) borrower must provide documentation from their Federal Loan Servicer showing that they have been granted a 3 year conditional discharge of their Federal Loans.Veterans will be considered totally and permanently disabled for purposes of the discharge if they provide documentation form the US Department of Veterans Affairs (VA) showing they have been determined to be unemployable due to a service-connected disability.Veterans discharge loans do not go through a 3 year waiting period.By doing so, you may be able to reduce your monthly payment and cost of the entire loan with a lower interest rate or shorter payback term. Some private lenders also consolidate federal student loans, however you would be losing the benefits of your federal loans in the process.

Even if you don't live in Rhode Island or didn't go to school in Rhode Island, you can still apply for this low fixed rate savings solution.This process is done through a private lender so in doing so you’d no longer be eligible for the benefits federal student loans provide.Make sure you don’t plan on taking advantage of these benefits before consolidating your federal loans with private student loans.You should also consider refinancing, which can save you thousands in the life of a loan and may also have a cosigner release available.

If you have federal student loans, consolidation may make sense only if you do not intend to use the benefits provided with federal student loans.

With student loan consolidation, the interest is averaged between all your loans and you end up paying the same amount in total that you would have previously.