Should i consolidate federal student loans

Consolidating federal loans may cause you to give up other benefits. Borrowers with Perkins loans should talk to their servicers about the risks associated with consolidation.

If you have Direct Loans and you are already making qualified payments on those loans under an income-driven repayment plan, consolidating your Direct Loans into a new loan will cause you to lose credit for any payments you have made towards loan forgiveness. You can learn out more about what type of loan you have through the U. Through this website you can access information about your federal student loans.

Consolidation allows you to pay off defaulted loans with a new loan and new repayment terms. If you cannot afford to repay your loan in full, consolidation is the fastest way to get out of default and enroll in one of the U. Warning: Consolidating federal loans may cause you to give up other benefits. Borrowers with Perkins loans which qualify for a separate cancellation program or those serving in the military should talk to their servicers about the risks associated with consolidation.

Warning : Consolidation restarts the clock on all loan forgiveness programs. If you have made progress towards forgiveness with any of your loans, it may not be worth it to consolidate. Searches are limited to 50 characters. Pro: It will be easier to manage your debt. Loan amount. Term length. Pro: You could get a lower monthly payment. Pro: You can pick your federal loan servicer. Cons of student loan consolidation. Con: You might not save money. Con: A longer repayment term means you pay more interest over time.

Con: Consolidating privately means you give up federal loan benefits. What to consider before consolidating.

On a similar note Dive even deeper in Student Loans. Explore Student Loans. Spot your saving opportunities. A private consolidation loan or refinancing a student loan allows you to combine all or some of your student loans, private and federal student loans, into one larger private consolidation loan through a private lender or bank.

If you are approved to refinance or consolidate your existing private student loans into a new private loan, the terms of the consolidation loan may allow you to lower your interest rate, lower your monthly payment by extending the length of the repayment term, or release a co-signer from your student loan. Consolidating federal student loans into a private consolidation loan has risks. You should weigh the benefits and risks of refinancing your federal student loan into a private student loan, because changing from a federal to a private student loan eliminates some of these protections and benefits.

If you have a secure job, emergency savings, strong credit, and are unlikely to benefit from forgiveness options, then refinancing federal student loans into a private student loan may be a choice worth considering.

Searches are limited to 50 characters. Please do not share any personally identifiable information PII , including, but not limited to: your name, address, phone number, email address, Social Security number, account information, or any other information of a sensitive nature. Skip to main content. Student loans. Federal Direct Consolidation Loan If you have federal student loans, you have the option to combine all or some of your federal student loans into a federal Direct Loan Consolidation.

Private consolidation loan A private consolidation loan or refinancing a student loan allows you to combine all or some of your student loans, private and federal student loans, into one larger private consolidation loan through a private lender or bank. Look closely if you are switching from a fixed rate loan to a variable rate loan. Interest rates for most federal loans have fixed rates, which means that you never have to worry about your interest rate and monthly payment going up if interest rates rise in the future.