Start Rules for consolidating student loand

Rules for consolidating student loand

To make the best choice for yourself, think diligently about what is important to you.

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And by shaving off a few percentage points, you can save thousands of dollars and get out of debt faster. While there are cost-saving benefits, it can be a risky move for federal student loan borrowers in particular. Through the Department of Education, federal student loan borrowers have certain rights.

Your federal student loans are administered by the U. For example, federal student loan borrowers have access to a variety of repayment plans — including an income-driven plan, which bases your monthly payments on your discretionary income.

You’re making payments, but a good portion of it isn’t even touching the principal. One potential solution is student loan refinancing.

But while that can help student loan borrowers save money on interest, it’s especially risky for federal student loan borrowers.

While many of these lenders will also consolidate your federal loans, we must advise you that this is not something you want to do unless you absolutely must.

Many federal loans offer benefits such as student loan forgiveness and income based payments that are not offered with private loans.

If you could see how much financial aid you’ll get for college, would you want to?