Consolidate Private And Federal Student Loans

Q: I need to consolidate private and federal student loans because my payments are simply too much for me to afford each month. I have federal student loans, and I have 4 separate private student loans. There is a lot of information on this topic out there, but I would like to make sure I’m getting the fairest deal. How should I start to learn about the best options/companies to consolidate private and federal student loans? Thanks for considering my question.

A: In order to consolidate private and federal student loans, you must first learn the “golden rule” of student loans consolidation… NEVER consolidate private and federal student loans together. You must always consolidate private and federal student loans separately, in order to maintain the federal student loan benefits associated with your federal student loans. Should you consolidate your federal student loans into a private student loan, you will forfeit your federal student loan benefits. As for private student loans, they are not allowed to be consolidated into a federal consolidation loan.

For federal student loan consolidation, you will want to take a look at The US Department of Education’s Federal Direct Loan Consolidation Program. This is perhaps your best resource for federal student loan consolidation. For private student loan consolidation, the terms and conditions can vary from lender to lender. As with federal student loan consolidation, you will need to do your research to ensure private student loan consolidation is the best choice for you. Next, please take a look at “The 10 Best Student Loan Consolidation Tips” for more information on how to consolidate private and federal student loans.