Consolidating student loans into direct loan adult singles dating auburn mississippi
Magnify Money is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site.This compensation from our advertising partners may impact how and where products appear on the site (including for example, the order in which they appear).Student loan consolidation refers specifically to the federal student loan consolidation program, a process through which you can combine one or more federal student loans into a single Direct Consolidation Loan.You cannot use this program with private student loans. Department of Education, you’re talking about refinancing, not consolidation.Federal Family Education Loans (FFEL), which were all given out prior to 2010, are only eligible for income-based repayment (IBR), which is certainly good but often not as beneficial as Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE).So, if you would otherwise be eligible for those better repayment plans, you can consolidate your FFEL loans and turn them into Direct Loans, thereby opening up your eligibility.
Both options have the potential to help you pay your student loans off quicker and pay less interest along the way, but there’s a lot of confusion around how they work, how they differ, and whether they’re right for you.
If you have older loans with variable rates, consolidating them now can lock in a relatively low, fixed interest rate.
For example, according to Nelnet, variable rate federal student loans currently have interest rates ranging from 2.05% to 3.80%, depending on the type of loan and year of disbursement.
And keep in mind that you can consolidate a single loan all on its own, so you don’t need multiple FFEL loans to take advantage of this.
If you wouldn’t otherwise be eligible for those repayment plans, or if you already only have Direct Loans, then consolidation won’t help you here.
While all of the above are good reasons to consider consolidating your federal student loans, here are four things to watch out for.