You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.
Federal student loan consolidation basics How to consolidate federal student loans Benefits of federal consolidation Drawbacks of federal consolidation Private student loan consolidation (student loan refinancing) When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
However, the interest rate is fixed for the life of the loan.
Depending upon the total balance you are consolidating, you may extend the repayment period for up to 30 years with consolidation.
For people looking at consolidation, it is important to look carefully at the interest rate you will be getting, because if the interest rate is higher than the current rate you are paying, making use of the consolidation loan doesn't add up at all.
Our best advice is to speak to a financial company that will be able to assist you, to make sure what is the best debt option for you.