Reconsolidating a student loan

6854933580_2c8b688306_z

In order to be eligible for consolidation, you must have one Direct Loan or Federal Family Education Loan (FFEL) in repayment or in a grace period. Borrowers can consolidate defaulted loans, but they must make arrangements with their loan servicer or repay the Direct Consolidation Loan with an income-driven plan.Most federal loans are eligible for consolidation, and borrowers can generally start the process after they graduate or leave school or drop below half-time enrollment.In fact it can be a good strategy with other debts that get out of hand.But when you add public student loans, you could face real problems. So if you roll in student loans, they're no longer student loans. Because that cuts you off from government programs that assist with student debt.As previously mentioned, consolidation is only for federal student loans.

Borrowers can apply for a Direct Consolidation Loan through the U. The interest rate is rounded up to the nearest one-eighth of one percent.Through refinancing, on the other hand, you could potentially lower your interest rates and save thousands of dollars in interest over the life of your loan.Consolidating or refinancing your student loans can make a lot of sense if you're having trouble managing multiple payments.Borrowers interested in consolidating their federal student loans can apply for a Direct Consolidation Loan through Student Refinancing your student loans is similar to consolidation in that you're merging all of your loans into one single loan.Have your advisor show you the math with the loss of that tax credit. you might save yourself money and stress by consolidating your non-student debt – if the terms are good.

You must have an account to comment. Please register or login here!