Consolidating private and federal student education loans

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When you apply for a Direct Consolidation Loan, you don’t have to consolidate all of your eligible loans.

If consolidation would cause you to lose the benefits associated with some of your current loans and you are working toward earning those benefits, you should not include those loans in your new Direct Consolidation Loan.

If any of the loans you want to consolidate are still in the grace period, you have the option of indicating on your Direct Consolidation Loan application that you want the servicer that is processing your application to delay the consolidation of your loans until closer to the grace period end date.

Unless the loans you want to consolidate are in a deferment, forbearance, or grace period, it’s important for you to continue making payments on those loans until your consolidation servicer tells you that they have been paid off by your new Direct Consolidation Loan.Repayment of a Direct Consolidation Loan will begin within 60 days after the loan is disbursed (paid out).Your loan servicer will let you know when the first payment is due.The second is student loan refinancing and can include both federal or private student loans.- Combines federal students loans into one federal loan - Raises interest rates slightly - May reduce monthly payments by extending repayment terms - One monthly payment - No credit requirement Through federal student loan consolidation, you can secure a loan with new, often more comfortable repayment terms.

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