Purpose of consolidating student loans


06-Aug-2017 06:47

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Item 1: Enter your last name, then your first name and middle initial.

You can’t consolidate private loans in the federal Direct Consolidation Loan program, but some private lenders allow you to consolidate federal and private loans together.

The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.

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.

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Item 6: Enter the area code and telephone number at which you can most easily be reached.Consolidation programs exist for both federal and private student loans, but the purpose of this page is to discuss federal student loan consolidations.