Consider not only your monthly payment but also how much you’ll pay in the long run.
Some borrowers might benefit more from consolidating their federal loans, while others may prefer the savings of private refinancing.
But any payments you made prior to consolidating will no longer count toward the PSLF program if you’re planning to use it. So if, for instance, you’ve been making payments for five years and are eligible for PSLF, it might be better to manage multiple monthly payments for another five years than to consolidate and wait ten years before your loans are forgiven. You can also consolidate your federal student loans by refinancing with a private lender. Before you apply, we recommend comparing terms and repayment options of at leastso you can be sure you’re getting a loan that works best for you.
Before you jump head-first, it's important to understand how student loan consolidation works. Consolidation works by combining several several loans into a single monthly payment.
If you have federal student loans, you have two options for consoldation: through a Direct Consolidation Loan or by refinancing through a private lender. This not only simplifies your student loan repayment, but it can also lower the monthly amount you pay toward student loan debt.
Or you may want to pick and choose and leave some loans out of the equation.
When you consolidate your student loans, you combine all your separate student loans and pay them off as a single new loan.
It takes at least 30 minutes to complete the application.
If you use the online application, you'll see this screen, from which you need to login with your ID.
Both federal consolidation and private refinancing allow you the opportunity to: Whether you’ll save money by consolidating your loans depends on your particular situation.
For instance, consolidating your student loans through a federal Direct Consolidation Loan could lower your monthly payments in the short-term if you extend your repayment term, but you may end up paying more over the life of the loan than you’re paying under your current plan.
(See more below.) See also: When people talk about student loan consolidation, they’re generally referring to consolidating federal loans through a Direct Consolidation Loan from the U. When you refinance, a private bank purchases all your loans and provides you with an entirely new loan and a new, often lower, interest rate that’s based on your debt-to-income ratio and credit history.