Like 45 million other Americans, Ashu has student loan debt. He took out Federal student loans for his undergraduate and graduate school.
Here's what he has:
- About $20,000 in Federally-owned student loans, $0 in private loans
- Combination of Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans
- Interest rates ranging from 3% to 8% (Currently at 0% due to the emergency relief period)
- Repayment periods of 10 and 15 years
- His loans are serviced by AidVantage and Great Lakes
He's received marketing materials from private banks that say he's prequalified to refinance at a fixed interest rate of 2.89%. He likes the idea of combining all of his loans into one, easy payment, and if he extends his repayment period to 20 years he could save over $100 per month.
Ashu called an IonTuition advisor to learn more about his options. The advisor helped him apply for a Direct Consolidation Loan that will give him a single monthly payment to a single servicer for a lower monthly payment. Also, Ashu's loans will maintain the 0% interest rate under the emergency relief provision until May 1, 2022.
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