Re consolidating consolidated student loan
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.Today, the answer to that question is probably yes!7 out of 10 graduates are now graduating with some form of student loan debt.This is often the reason that people cite when they say you shouldn’t combine federal and private loans.But before you dismiss the idea of refinancing, you should first take a look to see if any of these benefits apply to you.Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.One option you have when you begin tackling your student loan debt is to explore loan consolidation.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.
As you weigh the pros and cons, keep in mind that timing is critical.
With just a few exceptions, you get only one chance to consolidate with the government loan programs.
For example, under the Public Service Loan Forgiveness Program (PSLFP), your Direct Loan balance may be eligible for forgiveness after 120 payments if you’ve worked in the public sector that entire time.
Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.