Consolidation is an appealing option for people who have a lot of outstanding student loans. People who received federal student aid may wonder if they can take advantage of consolidation offers to find some savings and simplify repayment.
In fact, it is possible to consolidate federal loans. If you’re interested in a consolidation plan, you may be able to find a solution with your existing lender or a private lender. Here are some things to consider about consolidating student federal loans.
Types of loans that you can consolidate
You do not have to keep different types of loans separate from one another when you consolidate. You can restructure several loans from multiple assistance programs into one single loan. Most types of federal loans are eligible for consolidation.
- Subsidized and unsubsidized Stafford loans
- Perkins loans
- PLUS loans
- Parent loans for undergraduate students
- National direct student loans
Direct consolidation from the government
The federal student loan website where you originally applied for assistance offers helpful information about how you may consolidate. There is no fee to apply. You may receive offers from private lenders after your application is complete. Private lenders may charge a fee, and their interest rates may vary.
Student loan debt can put a drain on your monthly budget, and continuing to pay for your education years after you have graduated can be kind of stressful. Consolidation can help you pay down the entirety of your outstanding debt more quickly or lower your payments. Choose a repayment plan that you are confident about managing.
