Consolidating federal stafford student loans
If the money you borrowed was all federal loans, you can find easier repayment options by applying for a Direct Consolidation Loan.If some or all of your student loans were from private lenders, you will have to use a refinancing program to achieve similar results.
You combine all your student loans, take out one big consolidation loan and use it to pay off all the others.
While you can’t combine your private student loans with federal loans into the Direct Consolidation Federal Loan, you may find that a private loan consolidation will accept your federal loans.
However, most sources advise against consolidating federal and private loans together. For instance, Discover Student Loans offers a number of repayment assistance options, including deferments, extensions, forbearance, and hardship to help borrowers repay their loans.
Each has its own pros and cons, which we’ll get into in a little bit.
But in general, here are some of the benefits and potential drawbacks when considering student loan consolidation.