Private student loans come directly from a private lending institution and can also be consolidated.
However, Federal and private loans cannot be combined into one loan together.
Lower Interest Rate – The interest rate for your new consolidated loan is based on the average interest rates of all your student loans.
Single Monthly Payments – Consolidation simplifies the repayment process by consolidating multiple monthly payments into a single payment.
Extended Repayment Term – Loan consolidation gives you an extension in the repayment term, which results in lower monthly payments and increased affordability.
However, the process is complicated and requires extensive documentation.
This website can help you pay off your student loans and build a sound financial future.
Federal consolidation is available after borrowers enter repayment, either because they graduated or ceased to be enrolled at least half-time.
A federal Direct Consolidation Loan has a fixed interest rate based on the average interest of your federal loans rounded up to the nearest one-eighth of 1 percent.
Your original loans are actually paid off and a new loan is created with new terms.
Borrowers needing a lower monthly payment or facing several loans from multiple loan servicers may consider consolidation to simplify repayment.
Many students will get federal loans for each year in school and will graduate with more than one loan to repay.
If you have more than one federal student loan, you may be eligible to consolidate these loans into one Direct Consolidation Loan.
Student loan consolidation can be really helpful for individuals who are defaulting on their loan repayments due to financial hardships and are looking for an affordable option to get rid of their student loan debt.