You can’t consolidate private loans in the federal Direct Consolidation Loan program, but some private lenders allow you to consolidate federal and private loans together.
The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.
A consolidation loan is just what it sounds like: You can take two or more outstanding loans and refinance them into one.
As with the Stafford Loans, there are both Direct and FFEL consolidation programs.
The key terms for federal consolidation loans do not vary by lender: no application or origination fees are allowed and there are no prepayment penalties.
Federal law sets the period of time for paying back the loans and sets a ceiling on the interest rate.
Unfortunately, our nation’s education system, politicians, and students haven’t figured out a solution.
Most lenders will grant this request but if they don’t consolidation is not possible.Both federal and private lenders recognize that lower monthly payments help may be the best option, if you don’t get the job you want immediately after graduating from colleges.Find out more about the choices debt consolidation offers.The consolidation is generally possibly only for loan balances of the amount of 7500 dollars or more and this depends on the individual financial lender. For students that are presently in school you must ask your lender how to consolidate your student loans.In the past federal direct loans could only be consolidated if presently attending school but there has been a loophole, which was discovered by financial aid expert Mark Kantrowitxz, which showed that bank based Stafford loans can also be consolidated as well.Consolidating student loans is rolling all of your loans into one loan.