Consolidating student loans for a lower interest rate

Posted by / 12-Dec-2017 01:55

Consolidating student loans for a lower interest rate

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.

Debt consolidation is one of the few repayment options available on private loans and there are no loan forgiveness programs.

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.

Ideally, you would qualify for debt consolidation after graduation.

However, you also could qualify when you leave school or are enrolled less than half-time.

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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.