Consolidating student loans from Chat cam hinde
Private consolidation is often referred to as refinancing.
These processes are often confused, but they’re very different.
As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.
You have to complete the application in a single session, so do your research before you start.
Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.
Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website.
This is particularly true for grad school borrowers who use unsubsidized Direct loans and Graduate PLUS loans to finance their education.
Alternatively, there are six other repayment plans to choose from, including four income-driven plans.
Here’s how: When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
You can choose one of four servicers for your new direct consolidation loan: Fed Loan Servicing, Great Lakes Educational Loan Services Inc., Navient and Nelnet.
If your loans are already with one of those servicers, you can stay or choose a new one.