Consolidating federal graduate student loans
If your loans do end up at multiple servicing companies, it can be trickier to manage, but not impossible.You do have to make multiple payments (to each lender), but using an app to keep track of your finances, you can still watch all your loans in one spot.When You Should Never Consolidate There are two times you should NEVER consolidate: If you consolidate a Parent PLUS Loan in with other student loans, you suddenly lose access to many income-driven repayment plans. Also, if you've already been working towards loan forgiveness (whether via Public Service Loan Forgiveness or through your repayment plan), if you consolidate your student loans, it resets the clock.If you are going to consolidate your loans, make sure you understand what you're doing, and follow the proper steps to ensure it's done correctly.However, the best places to refinance student loans do typically offer lower interest rates that could save the qualified borrower money.Second, for your Federal loans, you never have to pay a third party company to consolidate your loans.
If you're going down the path to forgiveness, don't consolidate unless you have to.Why Consolidation Isn't Necessary For Most When you graduate from college, it's possible you have several different student loans.It's not uncommon for borrowers to upwards of 5 different loans (think one for each year of school, or maybe a summer semester added in).Understanding The Difference Between Consolidation And Refinancing One of the main messages that get individuals set on consolidation are the advertisements that abound by private companies offering to help you consolidate your student loans. First, the difference between consolidation and student loan refinancing: If you consolidate your student loans correctly, you can still potentially have access to Federal programs like student loan forgiveness or income-driven repayment plans.If you refinance your student loans, you now have a private student loan that does not have access to these programs.
However, most borrowers will find that all of their student loans are at one student loan servicer.