Consolidating all school loans
The results in the example demonstrate why this is important.In several instances, your monthly payment could be lower (sometimes significantly lower), but you will pay thousands of dollars more in interest. You’ll need to have information about each of your loans, including the loan code, loan account number and estimated payoff amount.If you’re using the paper application, you’ll mail the application to the servicer of your choice. You could also choose the Income-Based Repayment Plan, the Pay As You Earn Repayment Plan or Revised Pay As You Earn Repayment Plan as long as your consolidated loan doesn’t include a parent PLUS Loan.
This is because you’ll finance the new student loan based on a variety of factors, including your income, debts, employment and credit.
It’s not difficult to qualify for federal student loan consolidation, but you do have to meet certain criteria.
Most, but not all, federal loans are eligible for the program.
If the servicer delays processing, you won’t have to make your first payment until the end of your loan’s grace period. You can submit it online or mail the completed paper application to one of the servicers that manages Direct Consolidation Loans.
The servicer you choose for your consolidated loan will inform you when it pays off the existing loans, at which point you can stop making those payments and start repaying your Direct Consolidation Loan.