When you consolidate your private and federal loans through a credit union or bank, you could be offered a rate that is lower than what you’re paying right now.But, consolidating student loans is not right for everyone.CONSOLIDATING STUDENT LOANS Let’s take a look at a few of the pros and cons of consolidating your student loans.CONSOLIDATING STUDENT LOANS If you have multiple student loans, STUDENT LOAN consolidation can offer some simplicity to your repayment.While you can’t outrun your student loan debt, you do have options for getting it under control. With a loan consolidation, a lender pays off your various student loans and gives you a new, single loan, often at a lower interest rate. Private loans can only be consolidated through a credit union or bank.Federal student loans can be consolidated through the U. Some lenders, like Alliant, will consolidate both federal and private student loans.Let’s look at an example of getting a federal consolidation loan— FEDERAL CONSOLIDATION LOAN GOV you can also get a private consolidation loan PRIVATE CONSOLIDATION LOAN BANK if you have private loans, but we’ll get to that in a minute.
But before you sign on the dotted line of your new loan or refinancing agreement, make sure you know how debt reshuffling will affect your bottom line.If you’re struggling under the pressure of your student debt, you’re not alone.According to the Institute for College Access & Success, 69 percent of seniors who graduated from public and nonprofit colleges in 2014 had student loan debt — to the tune of an average of ,950.Car loans and mortgages can be refinanced with new lenders at lower interest rates.But for student loans – particularly federal student loans – what you got when you signed up was what you were stuck with until you paid them off. How refinance is different from consolidation With federal loans, as it stands, the only thing you can do is consolidate your loans to stay under the federal debt umbrella.