Consolidating loan school
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.Like federal consolidation, refinancing allows you to combine your loans intotake this 7-question quiz to find out.Now, since there isn't just one option as with consolidating through the federal government, you need to compare lenders before applying.Some of the highly vetted lenders we currently work with and recommend are: the lenders at the top of your list to see what their customer service is like.Since you'll be in a long-term relationship with your lender once you refinance, you want to make sure that not only their rates and loan terms are good but that they'll respond appropriately when you need by completing an initial inquiry with your top two or three choices.Or you may want to pick and choose and leave some loans out of the equation.
If you use the online application, you'll see this screen, from which you need to login with your ID.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation.
Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.
(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.
You also get a new loan if you consolidate with the federal government, but the resulting interest rate is simply the weighted average of all the interest rates on all your old loans.