Re consolidating federal student loans
If you’re contacted by anyone offering to consolidate your loans for a price, you should know that you are not speaking with an approved U. Department of Education consolidation servicer, and you should not provide them with any of your personal information.Everything that these companies claim to be able to do for you can be done entirely on your own, without spending a single cent, so don’t waste money on their scams!The purpose of this article is to walk you through the process of understanding exactly what direct consolidation loans are, when they make sense, and when they don’t.Keep in mind that consolidation your federal student loan debt could end up making you ineligible for some of the best benefits programs on offer, so it’s something that should be approached with caution.The main reason to consider refinancing is the possibility of getting a lower interest rate.
Here’s when a Direct Consolidation Loan may be your best bet: However, if you are a good candidate for refinancing, and you don’t qualify for any of the above government forgiveness programs, refinancing with Earnest could save you thousands — even tens of thousands — of dollars.
When you start repaying those loans, tracking multiple lenders and payments each month might be a pain, but you can simplify things by consolidating or refinancing your student loans into one new loan.
You may be able to consolidate your federal student loans, which involves combining most or all of your federal loans into one new Federal Direct Consolidation Loan.
However, it’s worth spending the time getting familiar with your loans before making the switch as there are certain benefits associated with federal student loans that you might lose if you consolidate or refinance. Keep in mind that these definitions hold true whether your loans are private or federal.
We strongly believe that student loan refinancing is a great opportunity to save money for many people.