Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
For recent graduates, that means the free ride is over and you’ll have to start making monthly student loan payments.
Whether you’re just beginning to repay your student debt or have been slogging through payments for several years, you’ve probably wondered “Am I going about this right?
As you weigh the pros and cons, keep in mind that timing is critical.
With just a few exceptions, you get only one chance to consolidate with the government loan programs.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
Can consolidate my loans or apply for government programs myself for free? Borrowers must have at least one Direct Loan of Federal Family Education Loan (FFEL) that is in grace, repayment, deferment, or default status to qualify.
If you are already consolidated but have one loan which is not, you can add that one loan into the consolidation.
Is there a minimum or maximum loan amount that qualify? If you are in default, you can consolidate under the Income Contingent Repayment Play or Income Based Repayment Plan.
I am already consolidated, can I consolidate again? Can I delay my application so I dont lose my grace period? Will consolidating clear the default notation from my credit? This allows your payment to be based on your annual income, which often times will allow you to qualify for a very small payment and in some cases even a payment amount of zero.
Can I consolidate if I am currently enrolled in school? There are multiple plans to repay your student loan, one of which is the Income Based Repayment Plan.