Re consolidating federal student loans
If you’re using private lenders for student loan consolidation, there is a chance you could get a better interest rate and possibly lower monthly payments. These are private loans where credit score and other conditions are weighed in. Here are some things to consider when evaluating the prospect of student loan consolidation.If you have a tremendous job that pays really well and no dings on your credit report when you graduate, you could find a lender willing to give you a break on interest to get your business. There are two primary types of educational loans — private and federal.Ideally, you would qualify for debt consolidation after graduation.However, you also could qualify when you leave school or are enrolled less than half-time.It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.When you consolidate student loans – either federal or private – it’s one payment to one lender, once-a-month. Loan consolidation for student loans was created to make it easier for millions of borrowers to pay off their debt.Both federal and private lenders recognize that lower monthly payments help may be the best option, if you don’t get the job you want immediately after graduating from colleges.Find out more about the choices debt consolidation offers.
Most of them could streamline the repayment process by consolidating their student loans. Get Financial Help Now It simplifies repayment and could save you money.
The process for consolidating private student loans is focused around your credit score.
If your credit score has improved dramatically since graduation, you may be in line for a lower interest rate.
You can’t consolidate private loans in the federal Direct Consolidation Loan program, but some private lenders allow you to consolidate federal and private loans together.
The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.
You can’t include private loans when consolidating through the federal Direct Consolidation Loan program.