Consolidating federal and private student loans together breaking up with someone your not dating
Find out the pros and cons to consolidation, if you're eligible, and how to apply. But as if having a debt that may take 10 years or more to repay isn’t enough, most of us also graduate with several different student loans.
Each loan may have different servicing company, a different interest rate, repayment schedule, and due date.
Student loan consolidation gives you one fixed interest rate.
If you still have variable-rate student loans, this may save you money over time if interest rates get higher.
If you can refinance at a lower interest rate, you’ll save money both on your monthly payment and the total interest you pay.
Beware, however, that if you extend the term of your loan (for example, from 10 to 20 years), your monthly payment will be lower but you will pay more in interest over the life of the loan.
You are eligible for federal loan consolidation if you have two or more federal student loans and have graduated from school or dropped below half-time status.
You can learn more about federal student loan consolidation at Student Aid. These are the only places you should go for student loan consolidation.
Do you have too many student loans to keep track of?
Get answers to frequently-asked questions on federal student loan consolidation loans and private student loan refinancing.
Avoid other companies promising to reduce your interest rates or consolidate your federal loans.
Private loans are another matter, which we’ll dive into next.