Re consolidating already consolidated student loan

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We break down the consolidation process into four basic steps: Private student loans and federal student loans have separate consolidation procedures.After you identify and separate your federal and student loans, you can begin to explore your loan consolidation options.In the process of consolidation, each original loan is paid in full and a new Direct Consolidation Loan is originated for the combined balance of the consolidated loans.ED determines the interest rate of the Direct Consolidation Loan by taking the weighted average of the interest rates on your existing loans and rounding up to the nearest 1/8 of a percent (0.125).Consolidating your federal loans will give you the opportunity to consolidate multiple loans into one (lower) monthly payment, and also let you choose a new repayment term and repayment plan.

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The last thing you want to do is consolidate your loans into a repayment plan that ends up costing you more!In other words, if you have federal student loan debt, you can apply for a new loan through William D.Ford Direct Loan Program to consolidate your existing loans.By consolidating several student loans, people are able to combine their loans into a single monthly payment, with a single interest rate, on a single term.Combining student loans doesn’t just simplify the payment process – it makes it easier to maintain control over the financial future.

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