Information on consolidating private student loans

Direct consolidation loans are now the only type of federal student consolidation loan.Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.

information on consolidating private student loans-24information on consolidating private student loans-2

The interest rate must not exceed 8.25% for consolidation loans prior to July 2013.

However, the interest rate may be greater than 8.25% if your consolidation application was received on or after July 1, 2013.

These include deferment, forbearance, cancellation, and affordable repayment rights.

Also, federal consolidation loans generally have lower interest rates.

Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.

Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.

(see box below), You can consolidate during grace periods.

This may lead to a lower interest rate on a Direct Consolidation loan, but only if you are consolidating variable rate loans. You will generally receive your first bills within 60 days after the new Direct Consolidation loan is made.

These circumstances are: Borrowers cannot consolidate private student loans with the federal consolidation loan programs.

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