Benefits of consolidating your student loans
And it isn’t based on your credit score — which can be a positive if your credit isn’t good, or if you have a fairly new credit history.However, if you have a high credit score and you consolidate to a federal loan, you may lose out on getting a lower interest rate that could save you thousands of dollars over the life of your loan.It takes at least 30 minutes to complete the application.If you use the online application, you'll see this screen, from which you need to login with your ID.We recommend comparing the terms and repayment options of at least three different lenders before you apply.See our picks for You can consolidate other private and federal loans by refinancing with a private lender.Each borrower’s financial situation is unique, so only you can say whether consolidating your student loans is a good idea for you.Knowing the pros and cons of consolidation can help you make a decision.
Refinancing with a private lender — and the resulting consolidation of your loans — may not be the best choice for you right now if: If you consolidate your student loans through the federal Direct Consolidation Loan program, you’ll retain eligibility for federal loan forgiveness, deferment and forbearance, as well as income-driven repayment plans. But be careful: once you start the application, you can’t save it.But any payments you made prior to consolidating will no longer count toward the PSLF program if you’re planning to use it. So if, for instance, you’ve been making payments for five years and are eligible for PSLF, it might be better to manage multiple monthly payments for another five years than to consolidate and wait ten years before your loans are forgiven. You can also consolidate your federal student loans by refinancing with a private lender. Before you apply, we recommend comparing terms and repayment options of at leastso you can be sure you’re getting a loan that works best for you.