Consolidating student loans through federal government

6854933580_2c8b688306_z

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.Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one! Consolidating allows you to merge multiple eligible loans into a single loan.Once you sign in to Student using your personal identifiers and Federal Student Aid PIN, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note.

Most federal student loans are eligible to be combined into a federal Direct Consolidation Loan, including: Keep in mind that when refinancing with a private lender, you lose federal borrower benefits such as access to income-driven repayment programs, forbearance, or deferment, and the potential to qualify for loan forgiveness after 10, 20 or 25 years of payments. If you have private loans they are not eligible for federal loan consolidation.And if you have any Parent PLUS loans, consolidating those with your other federal loans will mean you might lose access to certain repayment plans.Remember to keep making your loan payments in a timely and consistent manner until your consolidation application is approved!Refinancing your loans can lower your interest rate and your monthly payment.Federal loan consolidation can lower your monthly payment if you extend your loan term, but stretching out payments over a longer time period without an interest rate reduction can increase overall repayment costs.The only way to consolidate federal student loans is through the federal government, by using studentloans.gov, or by refinancing them through a private lender.

You must have an account to comment. Please register or login here!