Consolidating federal stafford loans updating the grand chessboard
Three of them are Federal student loans and two of them are private. Here is what you need to know about consolidating and refinancing your Federal and private student loans together.
Consolidating multiple loans into one single loan can really help borrowers who prefer to have a simple, single payment for their student loans.
One situation that is very common is the graduate who has Federal student loans but is just on the standard repayment plan.
If your Federal loans are at 6.8%, and you aren’t taking advantage of any of the special repayment plans, you may benefit by consolidating to a private student loan with a lower interest rate.
This is one of the best ways to lower your current payment on your Federal student loans.
Many borrowers, when they start college, don’t have great credit, simply because they haven’t built it up enough yet.
However, after graduation, many borrowers have much better credit histories, which could qualify you for a lower interest rate on your loan.
If you want to combine your Federal and private student loans together, you have to do it through a private lender.
The Federal Direct Consolidation Loan program does not consolidate private loans into Federal loans.
However, several banks and services do allow you to combine your private and Federal loans into one payment.