$81,250 TOTAL, $20,250 MORE $61,000 TOTAL You’ll also have new loan terms.STUDENT LOAN This means that you may miss out on some of the repayment benefits you might have been eligible for on your previous loans, like interest free deferment on subsidized loans INTEREST-FREE DEFERMENT DEFERMENT, SUBSIDIZED, 0, 1 or loan cancellation for special circumstances.Subtract your original fifty thousand dollars, - $50,000 ORIGINAL LOAN and you’ll see you’re paying over = $31, 250 TOTAL INTEREST thirty one thousand dollars in interest, compared to the eleven thousand dollars $61,000 TOTAL - $50,000 ORIGINAL LOAN you’d pay on the standard ten-year plan.= $11,000 TOTAL INTEREST So while simpler and lower monthly payments might give you some relief in the present, the trade-off is that it can cost you a lot more over time.COM THE MATERIAL PROVIDED ON THIS VIDEO IS FOR INFORMATIONAL USE ONLY AND IS NOTE INTENDED FOR FINANCIAL OR INVESTMENT ADVICE.BANK OF AMERICA AND/OR ITS AFFILIATES ASSUME NO LIABILITY FOR ANY LOSS OR DAMAGES RESULTING FROM ONE’S RELIANCE ON THE MATERIAL PROVIDED.PLEASE ALSO NOTE THAT SUCH MATERIAL IS NOT UPDATED REGULARLY AND THAT SOME OF THE INFORMATION MAY NOT THEREFORE BE CURRENT.CONSULT WITH YOUR OWN FINANCIAL PROFESSIONAL WHEN MAKING DECISIONS REGARDING YOUR FINANCIAL OR INVESTMENT MANAGEMENT. "/The material provided on this website is for informational use only and is not intended for financial or investment advice.
Let’s say you have fifty thousand dollars in federal loans.LOAN CANCELLATION DEFERMENT, PRINCIPAL But if you do decide to consolidate your loans, CONSOLIDATED LOAN PAYMENT it's good to keep in mind that you always have the option ADDITIONAL PAYMENTS of paying more than your monthly payment which can save you money over time, while still having the flexibility of not THE FULL AMOUNT ON STANDARD 10-YEAR PAYMENTS having to make the higher monthly payments that you would have on a standard ten-year plan. BILL, PAST DUE, TOTAL AMOUNT DUE If you're struggling to make payments on your original loans, you might consider repayment options PAYCHECK other than loan consolidation, like an income-based repayment plan.INCOME-BASED REPAYMENT Or if you run into a financial hardship and need short-term relief, you might consider deferment or forbearance.A LOT MORE But by comparing the pros and cons of each repayment plan available, REPAYMENT PLANS you’ll be able to find out which option is right for you.
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$50,000, ORIGINAL PRINCIPAL Now let’s say you want to consolidate these loans.