Ibr after consolidating
Direct Loan Consolidation only applies to federal loans and it doesn’t lower your interest rate.Refinancing can combine both federal and private loans, and it often lowers your interest rate or your monthly payments. Read on to learn about Direct Loan Consolidation and refinancing so you know which one is the better option for you.The 10-year Standard Repayment schedule is the default for student loan borrowers, but it’s not always affordable.High student loan balances will mean high monthly payments, which can be challenging to keep up with.This is great for those who exit college with a huge loan balance and are hit with payments they cannot afford while looking for work, for example.
If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief, or consider switching to an income-driven repayment plan.
If this includes you, one of the most popular repayment programs to apply for is Income Based Repayment. What you owe is not considered except to determine the extent of the financial hardship.