Borrowers should have loan account numbers, estimated payoff dates and contact information for each of their loans’ holders ready.
Those seeking consolidation should also review their repayment options at Student gov, so they’re prepared to pick the proper repayment plan.
Along with gaining a new degree, many graduates will also leave campus with new student loan payments they’ll have to fit into their post-graduate budgets.
Here’s what you need to know before deciding to consolidate student loans.
Once the application is submitted, the federal government estimates that it takes 60 to 90 days to officially complete the consolidation process.
Consolidating private loans works in a similar fashion, as far as paperwork goes.
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.
The difference is you’ll need to apply through a private lender.
Some are better than others, so make sure to look at the varying terms of each one — staying away from charges or origination fees and checking the maximum interest rate so you won’t get burned down the road.
Unlike federal loans, it can be trickier to get your private loans consolidated.