Consolidating private loans federal loans

Rated 4.1/5 based on 744 customer reviews

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.

consolidating private loans federal loans-79

consolidating private loans federal loans-44

consolidating private loans federal loans-77

consolidating private loans federal loans-28

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.

Leave a Reply