Consolidating student loans into direct 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.
In this section, you will learn how consolidation works, how to apply for federal loan consolidation, which loans can be consolidated, where to consolidate and how to best manage your loan once it is consolidated.
During the consolidation process, you will: You may receive mail from private loan companies offering consolidation loans.In the process of consolidation, each original loan is paid in full and a new Direct Consolidation Loan is originated for the combined balance of the consolidated loans.ED determines the interest rate of the Direct Consolidation Loan by taking the weighted average of the interest rates on your existing loans and rounding up to the nearest 1/8 of a percent (0.125).Over the last couple years student loan refinancing and consolidation has become a hot topic in the United States.As it sounds, refinancing allows undergraduate and graduate borrowers to refinance student loans at a potentially lower interest rate.