Federal consolidations are an excellent choice for those looking to lower their monthly payments and pursue long-term forgiveness options.It’s especially helpful for low-income borrowers as payments are based on discretionary income, which in some cases can lead to
Federal consolidations are an excellent choice for those looking to lower their monthly payments and pursue long-term forgiveness options.monthly payments!Student loan consolidation is the process of uniting some or all of your student loans into one new loan.By consolidating, the borrower would have only one student loan, with one monthly payment, interest rate, and term.This usually, depends on the rate the borrower got when they first took out their loans and the current interest rates offered for refinancing student loans.For those with both private AND federal student loans, it’s often very beneficial to do both a private student loan consolidation for their private loans and a federal student loan consolidation for their federal loans. Now let’s look at the benefits and eligibility requirements for each program.People usually consolidate or refinance their student loans to lower and/or simplify their payments.
You can apply directly online for federal student loan consolidation here or learn more at our federal consolidation page before you begin. Only direct federal student loans can be consolidated under this program. You are typically able to consolidate after you graduate, leave school, or fall below half-time enrollment. Federal consolidation does lower your interest rate, it simply takes a weighted-average rate of the loans you already have.
Because federal consolidation doesn’t change your rate, if you are a highly creditworthy borrower, you may want to consider private consolidation or refinancing.