Consolidating loans while in school
Ideally, you would qualify for debt consolidation after graduation.
However, you also could qualify when you leave school or are enrolled less than half-time.
You can consolidate Direct Student Loans using one of several income-based repayment plans and there are loan forgiveness programs.
However, if you try to refinance a federal loan through a private lender, you will lose eligibility for things like forgiveness programs, deferment, forbearance, as well as the income-based repayment programs.
It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.
It helps to have your student loan login and PIN so you can provide up-to-date information on the status of all your federal loans.
Both federal and private lenders recognize that lower monthly payments help may be the best option, if you don’t get the job you want immediately after graduating from colleges.
Find out more about the choices debt consolidation offers.
The process for consolidating private student loans is focused around your credit score.
If your credit score has improved dramatically since graduation, you may be in line for a lower interest rate.