How To Consolidate Federal Student Loans

How to consolidate federal student loans is something that both adults and parents of students commonly ask. Fortunately, the answers are easy and can make it much more convenient to repay those loans like Stafford loans, PLUS loans and other federal education loans.

How to Consolidate Federal Student Loans

You should know when you’re wondering how to consolidate federal student loans that any lender can provide this service to you. You don’t need to go through any special agency or company in order to qualify for federal loan consolidation, and you certainly don’t need to pay an outside company a fee in order to be able to consolidate. You can deal directly with the lender. They’ll make their money through the interest that you pay them while you’re repaying the loan.

Also, especially if you use a company you’re not familiar with you should never agree to have federal loans and private loans consolidated together. In many cases this isn’t even possible, but when it is you’ll lose all the money-saving benefits of the federal loans. If you need private education loan consolidation, you should combine those loans separately into one loan, and have another for federal loans. Bear in mind that two loans are better than several, and you’ll get a much better interest rate on the federal consolidation making it well worth your while to keep them separate.

How to consolidate federal student loans is something that’s easy to do, and has many benefits. You’ll end up with one loan payment instead of two or more, and you’re monthly payment will probably be smaller. In fact, if you decided to consolidate because you’re having a hard time making your monthly payments, then you should be aware that there are other options besides the 10-year repayment plan that comes standard with the consolidation.

You will pay more in interest charges over the course of the loan than you would with a 10-year plan if you choose a longer time period to repay the loan. If you want the smallest monthly payment, you may be able to stretch the loan out for up to 30 years, and simply pay more against the principle when you can to pay it off more quickly and save on interest.

How to consolidate federal student loans is an easy process because so many people do it to help make their loans more manageable and to lock in a lower interest rate for the course of the loan.