About consolidating student loans

You can’t consolidate private loans in the federal Direct Consolidation Loan program, but some private lenders allow you to consolidate federal and private loans together.The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.Your options are determined by the amount of debt you carry and the difficulty you have meeting monthly payment obligations.Consolidating student loans into one payment could free up additional cash or help to structure payback of your loans on more favorable terms.You can’t include private loans when consolidating through the federal Direct Consolidation Loan program.You can include federal loans when consolidating with a private lender, but you lose the perks associated with federal loans so it’s best not to mix the two.The programs are tailored to your income and family size.You can even switch programs if your financial or family situation changes.

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The Direct Consolidation Loan Program offers several repayment plans that give you up to 25 years to pay off the debt.Our partner will explain all the options available and give you a recommendation.It helps to have your student loan login and PIN so you can provide up-to-date information on the status of all your federal loans.Private student loans are credit-based, meaning student borrowers with high credit scores will pay lower interest rates than those with low scores because banks assess the risk of each borrower.Learn more about federal student loans All students are eligible for federal loans, regardless of financial need.It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.When you consolidate student loans – either federal or private – it’s one payment to one lender, once-a-month. Loan consolidation for student loans was created to make it easier for millions of borrowers to pay off their debt.For example, instead of making multiple payments to multiple lenders at various times of the month, you simplify the equation by making a single monthly payment.Learn more about private student loans Private student loans are granted and managed by lending institutions – banks, credit unions, college foundations – and typically charge a higher fixed or variable-interest rate than federally funded loan programs.When you decide to consolidate, our partners will make the process easy for you. The federal student loan application process is detailed. Your paperwork will be prepared and submitted for you, after your approval.A lower monthly payment and a more forgiving timeline is the second chance you’ve been waiting for. All federal loans have fixed payments, so be sure to make your payments on time and feel good knowing you solved your debt issues by being proactive.

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