Reconsolidating federal student loans
You will run into problems if you defaulted on a consolidation loan and now want to consolidate again.
If you defaulted on a FFEL consolidation loan, you may consolidate with the Direct Loan program, but only if you are selecting income driven repayment.
Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation.See the programs for military section of this site for information about other options for military service members and certain civilians affected by war or national emergencies.Parent PLUS borrowers who also have other federal student loans and choose to consolidate with Direct will find that the PLUS loan taints the entire consolidation loan and will mean that they will not be eligible to repay the consolidation loan using IBR.If they wish to consolidate, parent PLUS borrowers may exclude the PLUS loans from the consolidation and pay them separately.
These borrowers should also be able to consolidate and choose ICR.
Despite what a collector may tell you, if you select income driven repayment, you do not have to make three payments before applying for consolidation.