Consolidating federal loans with private lender

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Our editorial staff does not receive direction from advertisers on our website or our Partnerships Team.Our company may receive compensation from partners seen on our website. When you borrow money for school, it can take a long time to pay it back.You’ll need to find a private bank, credit union, or online lender offering refinance loans.Because these loans are made by different private lenders, the terms and conditions will differ lender-to-lender; there’s no standardization regarding what you need to do to qualify, what interest rate you’ll be charged, or how long you’ll have to pay back your new loan.Federal Direct Consolidation Loans are available to all students holding Subsidized and/or Unsubsidized Stafford Loans, Direct PLUS Loans, Federal Supplemental Loans for students, Federal Perkins Loans, Federal Health Education Assistance Loans and Federal Nursing Loans.If you have already consolidated your federal loans in the past, you may also be able to reconsolidate and add other outstanding federal student loans using a Federal Direct Consolidation Loan.

You may want to find a different student loan repayment plan, a lower interest rate, or combine multiple loans into one new loan.In addition, there is no grace period associated with most loan consolidation programs including the Federal Direct Consolidation Loan.This means that once you finalize the consolidation process, the payments begin the very next month.Refinancing, on the other hand, is done only through private lenders.Our research, news, ratings, and assessments are scrutinized using strict editorial integrity.

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