Consolidating federal student loan debt
Private student loans and federal student loans have separate consolidation procedures.By separating and being aware of which kinds of loans you have, you will be able to identify what your consolidation options are.Even thinking about how you are going to pay off your student loan debt can be overwhelming.You are not alone, over 40 million former students have loan debt.The electronic application usually takes around a half an hour to fill out and requires you to have a verified FSA ID, basic contact information and income verification.Application requirements for student loan refinancing vary between lenders.
This makes it harder to pause your loan payments and causes you to lose your eligibility for income-driven plans.
Luckily, there are a few ways that can lighten the burden of your debt and help you pay it off.
Through the use of programs like Student Loan Consolidation or Refinancing your debt can start to disappear at a rate that works for you without going into default. So, when you are making payments you are making payments on many loans, not just one.
This means that your interest rate is rounded up to the nearest ⅛ of a 1%, so you may slightly raise the overall amount you pay in interest.
If you are consolidating loans with varying interest rates, the interest rate will always be in between.
Here are some things to consider when analyzing a loan service company: There are a lot of private loan lenders to choose from, and many different reasons to consider when selecting one.