Consolidating federal loan student
If you are already making qualifying payments toward the Public Service Loan Forgiveness program or are on an income-driven repayment plan, you will lose credit for the payments you have made and have to start over.
For example, for your student loans to be forgiven under the Public Service Loan Forgiveness program, you must make 120 payments.
It is usually difficult to convince a private lender to release a cosigner.
Of course, if you consolidate all your private student loans, you will have just one monthly payment for them, which can be easier for many people to manage than paying on several loans every month.
Do you find yourself asking “Should I consolidate my student loans?
Finally, if you have a variable rate and would like to change to a fixed rate, Federal Direct Consolidation Loan will enable you to do that.
First, let’s focus on whether you should consolidate your private student loans.
If you have good credit, a stable job and have already made at least a few student loan payments, you are a good candidate for refinancing and consolidating your private student loans, because you can probably get a better interest rate than you are currently paying.
Paying off your loans earlier in addition to getting a lower interest rate will save you quite a bit of money.
There are two ways to consolidate your federal student loans.
Consolidating your federal student loans with a private lender could save thousands.