Consolidating private student loans into federal
These advantages include: Simplifying Repayment: Converting multiple loans into one student loan helps you cut down on the number of payments you’re making each month by merging them into one single payment.Reduced Monthly Payments: Multiple monthly payments can be burdensome for anyone trying to manage their expenses.
Release of Cosigner: If you had a family member, friend or loved one help you get a low interest rate on your original student loans, a private consolidation loan enables you to pay off those loans, releasing any cosigners from their debt obligation, and likely improving their credit score.Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.Some factors you should consider before a Private Student Loan Consolidation are: By assessing your need for a Private Student Loan Consolidation, you’ll then have a better idea of whether or not a consolidation will ultimately help your financial situation.
Using this information, let’s now take a look at some of the benefits of consolidating your private student loans to see if it’s the right fit for you.Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!