Here’s my situation. Total I have just over $ 20,000 in student loan debt. I’m not having a problem paying (avg. total for the 7 loans is $ 225 but I try to pay double that every month). I have to make three different payments a month. That doesn’t really bother me except I can’t do online bill pay for two of my loans owned by one company.
My concern is the interest. I went through finaid.org and got offered 6.1% for all seven loans combined. They told me any loan consolidation company just takes an average of the interest rates and that’s how they come up with a new interest rate. This is higher than two of my loans’ interest rate that make up over half of my debt.
My question is: Would I save money by accepting 6.1%?
I have 5 loans at 6.8% fixed. A total of $ 12,000
I have 1 at 6% = $ 5,500
And 1 at 5.6 for $ 2,700.
I got such great advice! Thanks everyone especially Jay P, Dan B, and Alex!