Consolidating Student Loans
If you applied for multiple student loans when you were enrolled in college, consolidating this debt can enable you to combine all student loans into one new loan payment. Rather than sending multiple checks to multiple lenders, you can send one check to one lender.
While you may have multiple student loans, it is important to remember there are two major types of student loans, government loans and private loans. Government loans can be consolidated with other government loans, and private loans may be consolidated with other private loans. However, government loans and private loans cannot be consolidated together.
The following Federal Loans are able to be consolidated:
1. Direct Loans
2. Stafford Loans
3. PLUS Loans
4. Perkins Loans
5. Guaranteed Student Loans
6. Federal Insured Student Loans
7. Supplemental Loans for Students
8. Auxiliary Loans to Assist Students
9. National Direct Student Loans
10. National Defense Student Loans
11. Health Education Assistance Loans
12. Health Professions Student Loans
13. Loans for Disadvantaged Students
14. Nursing Student Loans
Consolidating student loans is an affective means of reducing your interest rate, extending the life of the loan and lowering monthly payments. It is advantageous to consolidate student loans after graduation because you can save money by locking in a lower interest rate.
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