Cosolidating student loans
Student loan consolidation, which is also called student loan refinancing, comes in two main flavors: Getting schooled on the differences of each option will help you choose the student loan consolidation that makes the most sense for you. You are not permitted to add any private student loans you obtained from a bank or credit union into loans you want to consolidate through the Federal Direct Consolidation Loan program.There is no fee to use the Federal Direct Consolidation Loan Program. The interest rate on a Federal consolidation loan is a fixed rate, meaning it will not fluctuate from month to month or year to year.As long as you are up to date on your payments, you will be able to consolidate.Your credit scores are not used to determine your eligibility. Federal student loan borrowers can choose among different repayment programs.It might also help you build stronger credit scores, as on-time debt payments, including student loans, is a significant part of determining your credit scores.You may also be able to benefit from lower loan payments through student loan consolidation, though there are tradeoffs to consider when seeking a lower monthly payment. government, such as Stafford loans, Perkins loans and parent PLUS loans can be consolidated into a Federal Direct Consolidation Loan.
You are asking someone-Mom, Dad, your favorite aunt or uncle- to put their money on the line.
A co-signer is legally responsible for making loan payments if you fall behind. Many private student consolidation loans charge a variable interest rate.