Consolidating private loans federal loans
This option is offered by the federal government and only applies to federal student loans.With a Direct Consolidation Loan, you may extend your repayment term, which will lower your monthly payments, but not your interest rate*.To qualify, you must have a strong credit profile and employment history, and proof of income.If you qualify, refinancing offers you a variety of options.Your original loans are actually paid off and a new loan is created with new terms.
Some borrowers have utilized this program to take advantage of certain federal student loan benefits, like Public Service Loan Forgiveness.
Learn how to apply for a Direct Consolidation Loan, or get additional insights on the Federal Student Aid website. This option allows you to include some or all of your private and/or federal student loans.
Student loan refinance is a great option if you are looking to potentially lower your monthly payment, annual percentage rate, or remove a cosigner (like your parent) from an existing loan.
*The interest rate of a Direct Consolidation Loan is based on the weighted averaged of the underlying loans you want to consolidate, rounded up to the nearest 1/8 of a percent.
The weighted interest rate will be fixed for the life of the loan.