We reached out to private lenders for information regarding private loan consolidation.
There is no application fee for this federal program and you must go through one of the U. Department of Education’s approved consolidation servicers. The best resource for federal loan consolidation information is the lender through which you borrowed your federal loans, however, you’ll first want to understand the basics of consolidation by reviewing the information from the Federal Student Aid site here.
With federal loan consolidation you can consolidate any federal loans (Stafford, Perkins, Grad PLUS).
With student loan consolidation, you may be able to refinance at a lower interest rate, decrease your monthly payment, or both!
When you apply, most banks and lenders will look at your credit score, annual income, savings, and college degree type (or certificate of enrollment if still in school).
There are two categories of education consolidation loans: federal and private.
Federal loan consolidation combines multiple federal loans into one new loan.
Finding the right bank to refinance or consolidate your student loans is confusing.
Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation.
allows you to consolidate (combine) multiple federal education loans into one loan. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan.
The result is a single monthly payment instead of multiple payments. Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received.
Instead of making multiple payments to multiple lenders, the borrower only has to pay off the new consolidation loan, says Michelle Pezzulli, vice president of operations for Credit Union Student Choice, a student lending service provider in Washington, D.