Consolidating loans direct loans
The terms student loan consolidation and student loan refinancing are often used interchangeably, but they actually mean two very different things, and they have very different sets of pros and cons.Lenders often add to the confusion by using the term consolidation when they’re actually talking about refinancing.To see if you have FFEL Loans: If you have loans being serviced by a number of loan servicers and you would like the convenience of dealing with only one loan servicer.Your NSLDS records will identify the servicer for each of your loans.Repayment options For more information, visit the Federal Student Aid website and You Can Deal With It.Most lenders do not consolidate private loans together with federal loans.
To help ease the burden of student loan payments, many borrowers opt to consolidate or refinance their student loans.Both options have the potential to help you pay your student loans off quicker and pay less interest along the way, but there’s a lot of confusion around how they work, how they differ, and whether they’re right for you.By the end of this post you will understand both options and have a good idea whether one, or both, are right for you.Once an applicant submits his or her application electronically via Student , the consolidation servicer will complete the actions required to consolidate the applicant's eligible loans.Magnify Money is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site.While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products."Advertiser Disclosure Wednesday, February 1, 2017 The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.I haven’t met a single person with student loans who doesn’t want them gone as soon as possible.This compensation from our advertising partners may impact how and where products appear on the site (including for example, the order in which they appear).To provide more complete comparisons, the site features products from our partners as well as institutions which are not advertising partners.And the major downside is simply that consolidating won’t get you a lower interest rate, which is often a big point of confusion.Given that consolidation won’t improve your interest rate, why should you consider consolidating your federal student loans? Here are three of the biggest reasons to consider consolidating your federal student loans.