dating women with dogs - Questions about consolidating student loans

Combining the wrong federal loans could result in borrowers not being eligible for preferred repayment plans.

Anyone considering federal direct consolidation should be sure to understand the pros and the cons of the process.

By slashing your interest rates you can lower your monthly payments and get your loan paid off faster.

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Consolidation with a Private Lender – In order to consolidate with a private lender, a borrower must pass a credit check in order to get approved.

At that point the borrower provides the new lender specific loan information so that the old loans can be paid off.

Absent an act of Congress, this financial move is not possible.

If you look at the private student loan consolidation companies on the market, you will see there is a wide selection and that interest rates can be just over 2%.

You could end up with Navient again, or you could end up with another company that ends up being worse.

The biggest downside is that federal consolidation is not the best strategy for some borrowers.

The consolidation process can be started by applying through this portal from the Department of Education.

Completing the application usually takes less than half an hour, but it is several weeks or even months before the entire process is complete.

Those perks include income based repayment plans and student loan forgiveness.

Another advantage to the federal loan consolidation process is that anybody can do it. The downside is that consolidating your federal loans doesn’t actually lower your interest rate. Another downside is that you can’t pick the federal loan servicer that handles your new consolidated loan.

If you can’t lock down the lowest interest rates with those guys, a company like Lend Key will match you up with a non-profit credit union and hopefully offer a competitive rate.

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