Consolidating fed student loans
We provide our customers complete and accurate information regarding their loan forgiveness and consolidation options.
However, Federal and private loans cannot be combined into one loan together.The Direct Consolidation Loan application form can be obtained online or from the US Department of Education (Do E) and can be submitted in both electronic and paper form.The borrower may apply for loan consolidation on their own, or they may seek assistance from a student loan debt relief organization like Simple Repayment.The decision whether you should consolidate your loans is complicated.Consolidation does not always save you money or make the loan easier to repay.Single Monthly Payments – Consolidation simplifies the repayment process by consolidating multiple monthly payments into a single payment.
Extended Repayment Term – Loan consolidation gives you an extension in the repayment term, which results in lower monthly payments and increased affordability.
This article discusses some of the reasons for and against consolidation.
Student loan consolidation is the process of taking multiple student loans and combining them into one. Before consolidation, a student borrower might have multiple loans to pay back and many different loan balances to track.
Lower Interest Rate – The interest rate for your new consolidated loan is based on the average interest rates of all your student loans.
So, if your loans have a variable interest rate, you may get the consolidated loan at a fixed lower interest rate.
If you are struggling with student loan debt repayment options, ACCC can help sort out the confusion.