Process of consolidating student loans

The last section is dedicated to identifying the best private consolidation loans for those with a few different financial profiles.

There are two types of consolidation loans: federal and private, and they each come with distinct advantages and drawbacks.

If you're consolidating with the federal government, consolidating your loans means combining your multiple federal student loans into one new federal loan, called a Direct Consolidation Loan.

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Your servicer will review your application and your eligibility for the repayment plan you selected.It takes borrowers an average of 21 years to repay their student loans, while 28% of students are in default (or miss payments for 270 days or more) within five years of entering repayment.The picture painted by these statistics is clear: many borrowers are in over their heads with student loan debt and are looking for relief.The applicant will have the opportunity to add loans to and/or remove loans from the information obtained from the NSLDS.An applicant who has at least one loan that is still in the grace period and wants to consolidate that loan will be able to delay processing of his or her application until closer to the end of the grace period.