Consolidating private student
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Private loans can be much tougher to manage than federal student aid.
That's because they tend to offer fewer flexible repayment plans and postponement options—and rarely offer loan forgiveness, even in cases of the borrower's death.
However, some servicers do manage both federal loans and private loans.
You can consolidate all, just some, or even just one of your student loans.
By combining your loans into a single loan, you can have one single bill, and you may even be able to lower your payments.
When you consolidate your Federal student loans, you go through the Direct Consolidation Loan program.
It can reduce the pressure on the borrower’s budget by reducing the monthly loan payments (albeit by stretching out the term of the loan and increasing the total payments).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.This program is designed specifically for Federal student loans and is administered by the Department of Education.
According to Student Aid.gov, the following types of student loans are eligible for consolidation: • Direct Subsidized Loans • Direct Unsubsidized Loans • Subsidized Federal Stafford Loans • Unsubsidized Federal Stafford Loans • Direct PLUS Loans • PLUS Loans from the FFEL Program • Supplemental Loans for Students (SLS) • Federal Perkins Loans • Federal Nursing Loans • Health Education Assistance Loans • Some previous consolidation loans When you consolidate your Federal student loans, you will get a new loan through the Department of Education, which you can then setup a repayment plan that works for you.
If you’re not sure whether you have any private student loans, visit Annual Credit Report and pull your credit report for free. You'll find a list of all your debts on your credit report, including your private and federal student loans.