Consolidating federal student loan debt
Check out the official government site for all the details on eligibility.If you're consolidating with a private lender, consolidating your loans means combining and refinancing your loans into one new private loan.
With many private lenders, you can consolidate both private student loans and federal student loans separately or together.With a lower monthly payment, you’ll have more money available to cover living expenses and accelerate repayment of higher interest rate debts.Because there are no prepayment penalties, you can make larger payments to reduce your loan balance when it becomes affordable.You can only consolidate federal, not private, student loans through this program.(Note: You cannot consolidate federal and private student loans together through the federal government, either.) You can consolidate an existing Direct Consolidation Loan so long as you have a new eligible loan with which it can be consolidated. Department of Education made the landmark decision to allow you to choose your consolidation servicer (of which, Great Lakes is one) under the Direct Consolidation Loan program.
Consolidation gives you the opportunity to choose one of the U. Department of Education's consolidation servicers (of which, Great Lakes is one) to complete and service your Direct Consolidation loan.
Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan.
Consolidation can be a helpful tool for managing your finances, providing more flexibility during the repayment period. Some financial institutions will allow borrowers to include federal student loans in a private consolidation loan.
Here's the rundown you need to determine whether student loan refinancing and consolidation is right for you.
First, what does consolidating student loans really mean?
You don't have to pay for student loan services or advice.