It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.When you consolidate student loans – either federal or private – it’s one payment to one lender, once-a-month. Loan consolidation for student loans was created to make it easier for millions of borrowers to pay off their debt.When you decide to consolidate, our partners will make the process easy for you. The federal student loan application process is detailed. Your paperwork will be prepared and submitted for you, after your approval.A lower monthly payment and a more forgiving timeline is the second chance you’ve been waiting for. All federal loans have fixed payments, so be sure to make your payments on time and feel good knowing you solved your debt issues by being proactive.While both may be eligible for consolidation, it is important to think of these two types independent of each other when considering consolidation.Federal student loans are the easiest and most beneficial to consolidate because they offer low interest rates, increased payback terms (which decreases the monthly cost) and because they reduce the number of lending institutions you have to pay every month.
Then decide if you want a payment plan based on your current income or prefer a longer repayment period to get the lowest fixed payment possible.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%.Ideally, you would qualify for debt consolidation after graduation.However, you also could qualify when you leave school or are enrolled less than half-time.For example, instead of making multiple payments to multiple lenders at various times of the month, you simplify the equation by making a single monthly payment.