Consolidating school loans good idea

There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. You also should consider the impact of losing any borrower benefits offered with the original loans.

Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.

A complete list of the federal student loans eligible for consolidation is available in the application.

Top A Direct Consolidation Loan has a fixed interest rate for the life of the loan.

The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%.

To ask questions after you submit your Federal Direct Consolidation Loan Application and Promissory Note, contact the consolidation servicer you selected to complete the actions required to consolidate your eligible loans. mail, your consolidation servicer’s contact information was available when you downloaded or printed the paper application.

If you submitted your application electronically, your consolidation servicer’s contact information was provided at the end of the electronic process.

You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.

Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans.

The loans that were consolidated are paid off and no longer exist.

Top cannot be transferred to the student through consolidation.

Be sure to compare your current monthly payments to what monthly payments would be if you consolidated your loans.