Poor credit consolidating finance
Refinancing your federal loans with a private lender will cut you off from federal benefits such as income-driven repayment plans.It will also disqualify you from student loan forgiveness programs through the government.When you bundle together private loans—or a mix of private and federal—you’re actually refinancing rather than consolidating.When you refinance, a private lender pays off all your individual loans and issues you a single new loan—ideally with a lower interest rate and better terms.
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People with low credit scores are prime targets for disreputable lenders.
See our picks for the best banks for student loan refinancing.
Consolidated loans have a fixed interest rate based on the weighted average of the interest rates on all your loans, rounded up to the closest one-eighth of a percent.
If your original loans have variable interest rates, getting a fixed rate is usually a good move.
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Some will refinance your loans even if your credit score is less than ideal.