Consolidating federal stafford student loans
The Simple strives to keep its information accurate and up to date.
The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website.
One option you have when you begin tackling your student loan debt is to explore student loan debt consolidation.
Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.While you can’t combine your private student loans with federal loans into the Direct Consolidation Federal Loan, you may find that a private loan consolidation will accept your federal loans.However, most sources advise against consolidating federal and private loans together. For instance, Discover Student Loans offers a number of repayment assistance options, including deferments, extensions, forbearance, and hardship to help borrowers repay their loans.You’ll no longer owe the original loans, and since this consolidated loan is new, it will come with a new interest rate, a new payment policy, and new terms and conditions.There are both benefits and drawbacks to consolidating your loans, which we’ll discuss in this article.