Start Consolidating subsidized and unsubsidized loans

Consolidating subsidized and unsubsidized loans

Loans cannot be consolidated while the borrower is still in school.

Borrowers in default on a federal student loan are eligible for a consolidation loan if certain conditions are met.

Some private lenders also consolidate loans, but these cannot be consolidated with federal loans.

The repayment process is simplified because there is only one per month.

The interest rate on consolidated loans is often lower than what is currently paid.

Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.

Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.

This is great news for borrowers with high-interest rate federal unsubsidized or PLUS loans.

However, there are a few things to be aware of before you refinance fed loans.

We’ve gathered the most frequently asked questions from our blog and social media channels about federal student loan refinancing to help you decide whether it’s right for you. What’s the difference between refinancing and consolidating federal student loans?

When you consolidate federal loans through the Direct Loan Consolidation program, the resulting interest rate is the weighted average of the original loans’ rates, which means you don’t save any money.

That lower rate translates to total interest savings, and you may be able to lower your monthly payments or shorten your payment term. Are previously consolidated loans eligible to be refinanced? Yes, if the lender allows federal student loan refinancing. What are the benefits of refinancing federal student loans? If you refinance federal loans at a lower interest rate, you can save thousands over the life of the new loan.