Consolidating student loan drawbacks
While you can’t outrun your student loan debt, you do have options for getting it under control. With a loan consolidation, a lender pays off your various student loans and gives you a new, single loan, often at a lower interest rate. Private loans can only be consolidated through a credit union or bank.
Federal student loans can be consolidated through the U. Some lenders, like Alliant, will consolidate both federal and private student loans.
These include: term extension, Income-Based Repayment (IBR), loan forgiveness programs, and the Federal Direct Consolidation Program. While this will lower your monthly payment, the extension of your term will also increase the amount of interest you pay over the life of the loan.
You can view the various federal repayment options here (
Loan consolidation means combining student loans from one or many lenders into one new loan from a single lender.
Loan consolidation won’t reduce your overall debt, but it may make your current monthly payment more manageable.
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Consider the following about federal and private student loan consolidation: Federal Student Loan Consolidation The information contained herein is being provided as-is and without representation or warranty.
I often get this question when I talk to people about refinancing student loans.
The answer is a thunderous "maybe." A lot has changed in the student loan landscape over the last 10 years (and even in the last year).
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