Consolidating student loans already consolidated
Consolidation loans like the Stafford Loans, for example, can help make this possible with Direct and Federal Family Education Loan (FFEL) consolidation programs.When you opt for student loan consolidation, you’re working with a lender who will pay off your existing balances.Consolidating student loans can make educational debt easier to manage.Instead of having to handle payments for a series of student loans, you'll have one single monthly payment that covers everything.There are no application fees for a direct consolidation loan and no prepayment penalty.Once you finish your application, the loan servicer will complete the process.You generally can consolidate student loans after you graduate, leave school or drop below the half-time level.
In addition, if you have loans you don't want to consolidate, you'll list those separately.What’s more, some benefits of a federal consolidation loan, such as interest subsidies on deferred loans, are not available on private loans.Yet despite the appeal — and its popularity — student loan consolidation isn’t for everyone.They will, then, replace those loans with a new, consolidated loan and a new monthly payment.For any college grads overwhelmed by multiple student loans, this can be extremely helpful.
If you want to consolidate a loan that's in default, you have to either make satisfactory repayment arrangements with your lender or agree to repay it under one of the Department of Education's payment plans that tie payments to your income level. You'll need your Federal Student Aid personal identification number, or PIN, in addition to your personal information.