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Consolidating all my student loans

College students can take out new loans each year they’re in school, so by the time graduation comes, it’s common to have half a dozen, or more, individual loans.

Each of them may have different terms, including interest rates.

What’s more, consolidation typically results in the borrower paying more in total interest because consolidated loans are generally stretched out over a longer period, says Jessica Ferastoaru, a student loan counselor with Take Charge America. Consolidation usually gives you more repayment options, but it can limit them too.

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That’s because Parent PLUS loans are not eligible for several types of income-driven repayment, and they carry that restriction with them in a consolidation, causing your student loans to lose those options, as well. Consolidation can affect your eligibility for forgiveness.

NEWSLETTER: COLLEGE_PLANNERSign up for COLLEGE_PLANNER and more View Sample 1. One of the myths of consolidation is that it makes your debt less expensive by lowering your interest rate.

Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz.

You don't have to pay for student loan services or advice.

Our expert representatives have access to your latest student loan information and understand all of your options.

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  1. Learn the difference between student loan consolidation and student loan refinancing to find out which one is best for you.

  2. Important information on how to consolidate your federal student loans, without charging you any fees. have to pay for student loan services or advice. Our expert representatives have access to your latest student loan information and understand all of your options. Learn more about the free services available to you.

  3. Jan 15, 2017. There are also federal Direct Consolidation Loans. They represent a way to simplify things by consolidating all of your existing student loans into a new one. If you choose this option, you would then have just one monthly payment to make and it should be lower than the average of the payments you're.

  4. Jan 10, 2018. Federal Student Loan Consolidation FAQ. What types of federal student loans are eligible? All federal student loans are eligible for a consolidation, but not all repayment plans are available for the consolidation. When can my loans be consolidated? You are typically able to consolidate after you graduate.

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