Consolidating federal student loan debt
You can only consolidate federal, not private, student loans through this program.(Note: You cannot consolidate federal and private student loans together through the federal government, either.) You can consolidate an existing Direct Consolidation Loan so long as you have a new eligible loan with which it can be consolidated.You're effectively replacing your existing loans with one new loan, and you can choose from options that offer you access to different loan terms and fixed, variable, and hybrid interest rates.With many private lenders, you can consolidate both private student loans and federal student loans separately or together.You may also qualify for a low interest rate, which can net you significant savings over the life of your loan.This Huffington Post piece can help you pick the best type of consolidation loan in just five steps.Next, why would you want to consolidate student debt?If you choose the Federal Direct Consolidation Loan program, you'll end the headache of managing multiple bills each month.
(I'm personally a fan of Common Bond, but of course, I'm biased.) Don't hesitate to reach out if you want to learn more about your options. Common Bond is also the first company to bring the 1-for-1 model to education and finance.You'll convert all of those loans into a new private loan in the process.Check out Common Bond's student loan consolidation page for more details on refinancing and consolidation options.In his first job out of college as a local reporter in Green Bay, Wisc., he lived frugally while working for an hour. In the United States, the Federal Direct Student Loan Program (FDLP) includes consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt.