Consolidating federal loan student
The eligible loans listed on the application are paid off by the consolidation loan.The application may be completed online, on paper, or over the phone (restrictions apply).Student borrowers may consolidate, or refinance, their federal student loans, including Direct, Stafford, and Perkins loans, into a federal consolidation loan. There are two main reasons borrowers decide to consolidate their federal loans: a fixed interest rate and lower monthly payments.Other reasons include the convenience of having just one loan with one monthly payment and preventing one from defaulting on one's loans.Student loan consolidation or refinancing can be a great tool to use for those looking to save on, or simplify, their monthly payments, but going that route can also have serious consequences if not approached carefully – there are even student loan consolidations scams to be aware of.That’s why we created this guide – to give borrowers a useful resource that empowers them to choose if student loan consolidation is right for them and which type may best suit their needs.
There are two types of consolidation loans: federal and private, and they each come with distinct advantages and drawbacks.
A cosigner is someone who shares responsibility with the borrower for repaying the loan.