Consolidating student loans will help you extend the loan term or get lower interest rates. You can complete the process of consolidating online within a single session. All you need to do is fill the form and attach the required documentation.
How to consolidate private student loans
Consolidating your student loan means that you will replace your existing student loans with one private loan. The purpose is to obtain a private loan with a lower interest rate.
If you wish to consolidate your student loan, many financial institutions offer this service such as your local bank, specialized lenders, or credit unions. The process is pretty quick and won’t take much of your time. If you want to get familiar with the process, make sure to visit the Federal Student Aid site.
The private lenders will consider your financial history when determining the interest rate. This means that information such as your current income, education, and credit score will impact the interest rates.
How to consolidate federal student loans
There are two options available: a private lender or the Department of Education. You can go directly to the site studentloans.gov, fill the application form, and attach the required documents. However, keep in mind that federal student loans bring you a set of benefits. If you refinance the loan, you lose the right to those benefits.