Consolidating private student loans into federal
There are quite a few good reasons to consider consolidating your federal student loans.
Understanding all the benefits will help you make a good financial decision.
However, the interest rate is fixed for the life of the loan.
Depending upon the total balance you are consolidating, you may extend the repayment period for up to 30 years with consolidation.
The cosigner doesn’t have to be a relative; he or she can be any adult who meets the eligibility requirements.
Most borrowers will need a cosigner for this loan to meet credit, employment, and debt-to-income requirements.
Loan consolidation can be helpful for borrowers who want to combine their eligible federal student loans into a single Direct Consolidation Loan.For more information of private student loans, click here. W Bush first passed the Direct Loan program in 1992, as an amendment under the Reauthorization of the Higher Education Act.Although the program existed since then, it was not until President Obama’s budget in 2010 switched all new student loan lending over to the Direct Loan program.Request to Add a Loan to an Existing Federal Direct Consolidation Loan Mail your completed form to: Navient - Department of Education Loan Servicing Attn: Loan Consolidations Originations P. Box 6180 Indianapolis, IN 46206-6180 The interest rate is calculated by the weighted average of the interest rates of the loans consolidated, rounded up to the nearest 0.125 percent.So, the interest rate on a consolidation loan may be higher than the underlying loans.