Consoildating private education loans
You are eligible for any “Direct” repayment plan – and you can setup a timeline from 10 to 30 years to pay back the loan.
C."That new loan will have its own interest rate; it will have its own repayment terms; it will have its own terms and conditions," she says.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. Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks. Along with gaining a new degree, many graduates will also leave campus with new student loan payments they'll have to fit into their post-graduate budgets.Having multiple loans can be tough to manage – different amounts due, different payment due dates, and a lot more statements to keep track of.
By combining your loans into a single loan, you can have one single bill, and you may even be able to lower your payments.
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.
That would also reduce the total repayment over the lifetime of the loan – saving the borrower thousands in interest over the same 10 years.
The key here is to look at your own repayment situation and see if a lower interest rate is worthwhile.
Going back to our original situation, you could still combine your private student loans by refinancing, and you could consolidate your Federal student loans through the Direct Consolidation program.