Each year, college loans make it possible for hundreds of thousands of students to finance their post-secondary education.
Understanding all the benefits will help you make a good financial decision.
Here is an overview of some of the many benefits: Consolidation may not be the best option for everyone.
Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!
Consolidating allows you to merge multiple eligible loans into a single loan.
Through this program, students can replace their multiple monthly expenditures with a single lower monthly payment.
The majority of Federal student loans are eligible for consolidation under the Federal Direct Loan Consolidation Program.
A student loan consolidation takes the borrowers loans and combines all the loans into one new loan with one lender, and one weighted average interest rate.
This removes the burden from the borrower of trying to keep track of many different loans, with different lenders, balances, and interest rates.
One of the biggest myths when it comes to student loans is whether you can combine your Federal and private student loans. Well, since the middle of 2014, you can actually refinance and consolidate both your Federal and private student loans into a single loan with many private lenders.
Think about it: you just graduated from college and you have a combination of about five different student loans. However, there are times when combining all of your loans (both Federal and private) makes sense, and there are times when it may not.
Student loan debt has become a staple issue for students to deal with during college and post graduation.