You can also
consider federal loan consolidation or student loan refinancing to simplify your payments and gather all your loans in one place.
Not exact matches
While private
consolidation loans can be beneficial, there are significant drawbacks to
consider — especially when consolidating
federal loans with a private
loan.
Getting a
federal consolidation loan isn't usually
considered as «refinancing» since the interest rate of the new
loan is equal to the weighted average of the
loans being consolidated.
There are other factors to
consider (the side benefits of
federal consolidation loans for example), and there are additional strategies not covered in this scenario that some borrowers may be able to utilize.
Since a private
consolidation loan can be used to refinance both
federal and private
loans, private
consolidation loans could be used to consolidate only private
loans,
federal and private
loans, or only
federal loans — this means that there are several scenarios to
consider.
Note: Since all
federal consolidation loans come with a fixed interest rate, this section only applies to those
considering private
consolidation loans.
Before you start to panic, there are some options for you to
consider to make student
loan repayment less of a hassle and that is through
federal direct
consolidation.
There is one other extended repayment program to
consider with the
federal government: the
federal consolidation loan program.
Instead,
consider federal student
loan consolidation or an income - driven repayment plan, if you're not on one already.
In the case of
federal student
loans, a borrower might
consider grouping numerous
loans with numerous servicers into a Direct
Consolidation Loan.
As with
federal student
loan consolidation, you should
consider refinancing with a private lender if you want to simplify your monthly payments.
This means there are also two types of
consolidation programs to
consider, with private programs designed to deal with private
loan debt, and
federal programs for
federal loan debt.
If you have
federal loans, you may want to
consider federal consolidation as opposed to student
loan refinancing.
Before you start to panic, there are some options for you to
consider to make student
loan repayment less of a hassle and that is through
federal direct
consolidation.
Another alternative to
consider is
consolidation of your
federal loans.
Carefully
consider the advantages and disadvantages of
federal loan consolidation before deciding to consolidate.
That being said, private
loan consolidation is another option to
consider, as
federal loan consolidation isn't right for everyone.
In order to select the best
consolidation plan,
consider what type or types of
loan you are holding:
federal student
loans, private
loans, or both.
Others may wish to
consider federal student
loan consolidation, which could lower payments by extending the term of the
loan.
In that case, you might
consider a
Federal Consolidation Loan for refinancing.
Instead,
consider federal student
loan consolidation or an income - driven repayment plan, if you're not on one already.
Federal consolidation is not
considered refinancing because the new (fixed) interest rate is simply the weighted average of the interest rates on the
loans being consolidated.
Given that
consolidation won't improve your interest rate, why should you
consider consolidating your
federal student
loans?
Now that you have had a brief look at government debt
consolidation loans, why not
consider one to consolidate your
federal student
loan debts?
If you have multiple student
loans that have different interest rates and you want one lower fixed payment,
consider a student
loan consolidation into a federal Direct L
loan consolidation into a
federal Direct
LoanLoan.
Under the fed
loan consolidation, only your
federal student
loans will be
considered.
If you have multiple
federal loans and / or high
loan debt, one option to
consider is
consolidation.
Getting a
federal consolidation loan isn't usually
considered as «refinancing» since the interest rate of the new
loan is equal to the weighted average of the
loans being consolidated.
There are other factors to
consider (the side benefits of
federal consolidation loans for example), and there are additional strategies not covered in this scenario that some borrowers may be able to utilize.
Student
loan borrowers should not refinance
federal student
loans into a private joint
consolidation loan without seriously
considering the risks including losing valuable borrower rights and flexibility unique to
federal loans.