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Posted in Student Loans
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Zarellta

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Consolidating Student Loans- Yes/No?
Credit Karma is suggesting that I consolidate and it will save me 921$ for the life of the loan…When I do the math it seems like I'm going to be paying almost 3000$ MORE for the life of the loan. Am I doing my math wrong?

Current loan:
356$/mo at average of 7.35% for 74 months

New loan:
173$/mo at 3.16% for 180 months

I'm doing the monthly payment times the number of months in the loan and for my current loan it ends up being (356x74) 26,344$
for my new loan it would be (173x180) 31,140$

Also, does anyone know if a consolidation of student loans would show up still on a credit report as "student loans" or if they would become "private loans"? I know student loans look better on your credit and I don't want to lose that by all of a sudden turning my 25K dollars in debt into a private loan.

THANKS!

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If you started with Federal Loans, they remain Federal after consolidation.  Under your "new loan", is that a private loan or did you look into consolidating through the DOE?  Do you know about the income-based repayment options?  Loan forgiveness programs?  If not, call Crest at 469-619-0644 for a free quote on a consolidation.  No obligation to check it out.

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