Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs. Refer to the complete list of federal student loans eligible for consolidation in the application.
There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. Department of Education (ED) or ED’s consolidation loan servicers. Top A Direct Consolidation Loan has a fixed interest rate for the life of the loan.
Since Sallie Mae is no longer a federally owned entity (since 2004), Sallie Mae student loans are not eligible for Federal Direct Consolidation.
They are, however, eligible for consolidation with private lenders.
Direct consolidation loans are now the only type of federal student consolidation loan.
Students who turn to scholarships, grants, work-study programs, private funding and federal loans first, but are still not able to cover all the expenses involved with college tuition, books and accommodations, often turn to private lenders like Sallie Mae.
If you meet these requirements, you might be an excellent candidate for student loan refinancing and consolidation!
If you don’t think you meet the requirements, don’t worry – as you can apply with a cosigner to increase your chances of getting approved for a better student loan.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.