Consolidating private and federal loans
You also cannot consolidate a defaulted loan until you make a repayment agreement with the loan’s servicer or unless you repay the new consolidated loan with one of the government’s eligible repayment plans.
Access to those repayment plans is one of the benefits of Direct Consolidation Loans for some borrowers.
The sheer amount of information and numbers can be difficult to track.
If you feel overwhelmed with managing your student loan debt, don’t panic. One way to make student loans more manageable is through consolidation.
When you consolidate your debt, you combine all those loans into one.
You do this by taking out a new loan for the amount of the balances of the existing loans, use the newly borrowed money to repay all the older loans, and then focus on repaying your one new loan.
Rather, the new rate is a weighted average of all the interest rates on your student loans, plus a small percentage on top.Student Loan Hero is not a lender or investment advisor.We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions.If you’re only interested in simplifying your situation and won’t take advantage of any repayment plans, consider finding other ways of tracking your debt and managing repayment.That’s because Direct Consolidation Loans have drawbacks, too.