Consolidating student loans and private loans
While many of these lenders will also consolidate your federal loans, we must advise you that this is not something you want to do unless you absolutely must.
Many federal loans offer benefits such as student loan forgiveness and income based payments that are not offered with private loans.
The Federal Direct Consolidation Loan program does not consolidate private loans into Federal loans.
The benefits of refinancing your private student loans are typically two-fold.
First, you get a single monthly payment for all of your previous private student loans.
Private Student Loans still have to meet federal requirements like any other loan offered from a bank or other financial lender.
However, within those rules, there can be a wide variety in what is offered between agencies.According to Student Aid.gov, the following types of student loans are eligible for consolidation: • Direct Subsidized Loans • Direct Unsubsidized Loans • Subsidized Federal Stafford Loans • Unsubsidized Federal Stafford Loans • Direct PLUS Loans • PLUS Loans from the FFEL Program • Supplemental Loans for Students (SLS) • Federal Perkins Loans • Federal Nursing Loans • Health Education Assistance Loans • Some previous consolidation loans When you consolidate your Federal student loans, you will get a new loan through the Department of Education, which you can then setup a repayment plan that works for you.The interest rate will also be fixed at the current Federal Direct loan rate.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.