Consolidating private government student loans
Student loan consolidation programs give borrowers a very powerful tool for managing problematic repayment issues.Borrowers that default on federal loans cost taxpayers millions of dollars in repayment. Thanks to government intervention and a general revision in attitudes, a student consolidation loan is simply another variety of student loan.And while private loans can definitely be helpful to pay next semester’s tuition, you may find yourself wishing you’d found an alternate strategy when repayment arrives.Private loans can be much tougher to manage than federal student aid.But that doesn't mean you can’t successfully repay your private loans. Private loans are generally offered by schools, states, or financial institutions, including: While credit card companies sometimes offer student loans, these loans are not the same thing as a credit card.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.
I have a few several outstanding loans with both public and private entities from graduate school (Navient, Nelnet, Discover student loans).Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.Arm yourself with the know-how to strategize your loan repayment process.When you consolidate loans, the original loan obligations are paid by your lender, either federal government or private lender.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.