Consolidating private student loans federal student loans

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In many cases, this will make it easier to manage your debt.

Another benefit to consolidation is that the monthly payment on a Direct Consolidation Loan may be less than the combined payments that were previously due each month on the individual loans that were consolidated.

Private lenders also usually require that borrowers have a certain minimum amount of student loan debt (say, ,000) in order to refinance.

A private lender will determine the interest rate primarily by looking at your credit score.

Private student loan consolidation or “refinancing” involves repaying older student loans by taking out a new loan from a private lender to replace them.

The main benefits to refinancing student loans can include the following.

Some private lenders offer certain forms of relief to borrowers who are struggling to make their student loan payments (such as forbearance plans, repayment assistance, and other relief), but these options are available at the sole discretion of the lender. If you don’t know whether your student loans are private or federal: Each private lender has different criteria.

Review the following questions and find what you need to know about consolidating student loans.

Are you tired of managing multiple federal student loan payments, with multiple interest rates or multiple servicers? The program may allow you to consolidate your federal loans into one, and select the consolidation servicer of your choice.

The Direct Consolidation Loan program is offered by the U. Department of Education to federal student loan borrowers.

There is no fee to consolidate federal student loans into a Direct Consolidation Loan.

After consolidation, you’ll only have to make one loan payment per month instead of multiple payments on your various federal student loans.

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