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Student Loan Consolidation

Know the difference between Federal consolidation and private refinancing

Student loan consolidation (combining multiple loans to create one monthly payment) can help simplify your repayment. There are two ways to tackle student loan consolidation – federal and private. Here's how they stack up:

Direct Loan Consolidation (Federal)

  • Multiple federal education loans are combined to create one loan and one monthly payment.
  • Interest rate is determined by the average rates of all loans being consolidated
  • You may be able to extend the length of your loan. This can result in lower monthly payments, however you may end up paying more over time.
  • In general, this type of consolidation will add convenience, but is not a money-saving option.

CommonBond Refinancing (Private)

  • Multiple federal (and private) education loans are combined to create one loan and one monthly payment.
  • A new interest rate is calculated, based on your credit history and overall financial health.
  • On average, CommonBond members save $24,046 by refinancing to a lower rate.6
  • Note: when you refinance federal student loans with a private lender, you forego federal student loan protections, such as public service forgiveness and income based repayment plans.

Start saving today.

Find out how much you could save by refinancing with CommonBond.

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