How much can I save?

How much can I save?
How much you save by consolidating loans depends on what interest rate you get and whether you choose to extend your repayment plan.

According to Sallie Mae, the leading provider of student loans in the United States, consolidating student loans can reduce monthly payments by up to 54 percent. However, the only way to reduce your payment this much is to extend your repayment plan.

Normally, you have to repay your student loans within 10 years. With a consolidation loan you can extend your repayment plan all the way up to 30 years, depending on the amount you’re consolidating.

Remember that if you choose to extend your repayment term, it will take longer to pay off your overall debt and you’ll pay more in interest. There are no preypayment penalties, so you can always choose to pay off the loan early.