Consolidating school loans private loans
It often comes from different lenders, so it is not unusual to owe money to 8-10 separate lenders by the time you graduate.
If you continue borrowing for graduate school, add another 4-6 lenders to the mix.
It’s also why student loan consolidation is such an attractive solution.
Federal loans can be consolidated in the Direct Consolidation Loan program.
Some lenders do make it possible to reduce the interest rate by making direct payments or by qualifying for a reduction by making on-time payments over an extended period of time.
If the money you borrowed was all federal loans, you can find easier repayment options by applying for a Direct Consolidation Loan.
If some or all of your student loans were from private lenders, you will have to use a refinancing program to achieve similar results.
Refinancing student loans is similar to the Direct Consolidation Loan program in that you bundle all your student loans into one loan and make a single monthly payment, but there are important differences that you should look at before making a decision.
Refinancing, sometimes called private student loan consolidation, is primarily for private loans and can only be done through private banks, credit unions or online lenders.