Your new loan will come with whatever borrower protections your new lender specifies.
(Be sure that, at minimum, you can take advantage of deferment and forbearance so that you have some cushion in the event of an emergency).
Married borrowers may no longer consolidate their loans together.
To be eligible for Federal Loan Consolidation, borrowers must have at least one loan from the Federal Direct Loan program or Federal Family Education Loan (FFEL) program that is not in an “in-school” status.
Now, let's get started on how to consolidate your student loans.
For easy reference on federal options, here's the Direct Consolidation Loan link to review that loan program.
The monthly payment amount may decrease because repayment can be spread over a longer time period.
Because there are no penalties for prepaying the loan in full or in part, borrowers may make larger monthly payments or extra payments if they wish.You're effectively replacing your existing loans with one new loan, and you can choose from options that offer you access to different loan terms and fixed, variable, and hybrid interest rates.With many private lenders, you can consolidate both private student loans and federal student loans separately or together.However, Brian Mc Bride, an associate producer at CNN and a 2010 graduate out of Arizona State University, managed to pay off ,500 in debt in just two years. Mc Bride owed ,500 in student loan debt and ,000 for his 2003 Honda Civic.He said he tackled his car loan first to pay down a higher interest rate during a six-month grace period following graduation on his student loans.You'll also preserve the robust benefits of federal student loans, such as Income-Based Repayment, that private lenders don't offer.