Lenders consolidating federal student loans

07 Jun

If you are juggling more than one payment on your loans (whether they are federal, private, or both), or if your federal loans are currently in default status, consolidation may help you manage your debt and protect your credit.

You may pay more in the long run, but for now, you’ll be able to make just one monthly payment – and it may be considerably lower than your current loan payments.

The National Council of Higher Education Resources (NCHER) also has a fact sheet with a list of guaranty agencies. The maximum interest rates, and many of the important terms of federal loans are set by Congress, and are similar in both the FFEL and Direct Loan programs.

The federal student loan programs are highly regulated by Congress and the U. There are, however, a few important differences in available repayment plans for FFEL and Direct borrowers.

allows you to consolidate (combine) multiple federal education loans into one loan. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan.

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Our expert tips and hacks will help you save money, pay off loans sooner and stress less about student loan debt.Although the FFEL program is federal, it is mostly administered through state or private nonprofit agencies called guaranty agencies.Guaranty agencies pay off the lenders when borrowers default, and in turn, are reinsured by the Department of Education.Lenders and guaranty agencies are not involved in the process.FFELs are guaranteed loans made by private lenders.