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Under the FFEL Program, loans were made by banks and ultimately guaranteed by the taxpayer in case you didn’t make your payments. Loans from both of these programs are FEDERAL student loans.
One benefit of refinancing your student loan debt is that many lenders will give you the option to consolidate your federal loans with any private loans to have one, single payment.
When you’re in the market for a lender to refinance and consolidate your student loans, you’ll need to consider a number of factors: Ideally, you’ll want to find not only a great rate, but also a loan term that makes your payments manageable, without being so long that you’re paying your loan for the rest of your life.
Be sure you look past just the dollars and cents to also consider the reputation of the lender in a broader sense. What protections do you have in case you were to lose your job or be unable to make a payment?
When you consolidate multiple student loans or refinance a single student loan, you may receive a lower monthly payment with a reduced interest rate or an extended repayment term.
Keep in mind that extending your repayment term may increase the amount of interest you pay over the life of the loan.