You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.
Direct consolidation loans are now the only type of federal student consolidation loan.
There are both benefits and drawbacks to consolidating your loans, which we’ll discuss in this article.
Choosing to consolidate your loans is an individual choice and the right decision will depend on the specifics of your loans — the types of loans, interest rates, balances, borrower benefits, and more — as well as your current financial situation.
Each lender has its own specific underwriting criteria, so you may have a higher chance of approval at certain lenders.
You can consolidate all, just some, or even just one of your student loans.
Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.
Ask Suze a question or get another answer Please note: This is general information and is not intended to be legal advice.
I have a good job, but I have more than 0,000 in college loans from different banks coming due in two months. A: First, check to see if you have any federal loans, like Staffords.
I need to consolidate them but have not found a bank willing to do so. Even if they came through a private lender, you can consolidate them through the Federal Direct Consolidation Loan program, which offers different repayment schedules that are meant to help you take control of your debt.
But before you head down that road, here’s what you should know.
If, like many college graduates, you have multiple student loans, you’ve probably heard the term “student loan consolidation” thrown around more than once when talking about repayment options.