Consolidating graduate loans

01-Sep-2020 12:58

Use our Private student loans are not eligible for consolidation through a federal Direct Consolidation Loan, but you can consolidate your private student loans by refinancing with a private lender.With numerous banks offering student loan refinancing, choosing a lender can be overwhelming.Consolidating your student loans can seem like an attractive idea.After all, one payment may be a lot easier to manage than several.Or you may want to pick and choose and leave some loans out of the equation.When you consolidate your student loans, you combine all your separate student loans and pay them off as a single new loan.Consolidation through a federal Direct Consolidation Loan helps streamline your monthly student loan payments while allowing you to: As we mentioned above, there are some important things to consider before you apply to consolidate your student loans, like whether you’ll lose access to federal benefit programs.

See also: You can consolidate your federal student loans online through the U. Once you’ve considered how the monthly payments and total payment amounts will impact your current financial situation, fill out the online application for the bank that meets your needs.

Here’s why: when you consolidate federal loans, the U. Department of Education sets your consolidated interest rate as a weighted average of the interest rates of all your old loans, rounded up the nearest one-eighth percent.