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.Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.7 out of 10 graduates are now graduating with some form of student loan debt.With an average balance of ,400, student debt is a big part of the average college graduate's life.Since it lacks any profit motive, both original loans and consolidation loans from the government usually have lower interest rates and easier payment terms than loans found in the private market. Department of Education (USDOE) provides clear, straightforward information on its consolidation loan features, suggesting that anyone considering consolidation first make a thorough review of existing federal loans.Rather, its goal is to put as many students through school as affordably as possible, and that includes recommending consolidation loans when appropriate. If you’re not sure which bank services your loans, you can check an online database called the National Student Loan Data System and find all the information about your loans that’s been forwarded to the USDOE by your school and whatever companies guarantee and service your loans.
As you weigh the pros and cons, keep in mind that timing is critical.
If you would like to add other eligible loans, your servicer must receive your Request to Add Loans Form within 180 days from the date your Direct Consolidation Loan is completed (originated).
If you choose Nelnet to originate and service your Direct Consolidation Loan, you may request to add other eligible loans to it by completing the Request to Add Loans Form and send it to Nelnet via email Direct Loan [email protected], fax (402.858.3929), or mail to: Nelnet P.
People who are working in the public sector or taking advantage of federal debt relief programs such as income-based repayment or public service forgiveness may not want to refinance, as these programs do not transfer to private refinance loans.
Consolidating student loans via refinancing is best for people whose financial position - in terms of employment, cash flow, and credit - has improved since they graduated from school.
After you are done, you will know how to refinance and consolidate student loans. You may now have a general idea of how to refinance student loans and how to consolidate student loans, as well as the basics of what each lender offers, but there is much more information you should know before choosing a lender.