Consolidating my college loans
Check out our consolidation calculator to estimate new monthly payments, compare lenders on our Lenders page, educate yourself with our Resources and explore our Must Reads for things you need to know right now.Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!With this program, you retain all of the benefits and protections that are part of the federal student loan program.If you have older, variable rate loans, you can also lock in a fixed rate which can make it easier to plan for your financial future.
In contrast, student loan consolidation typically refers to the federal program known as the Direct Consolidation Loan; although sometimes people use the term "consolidation" to simply describe the merging of many loans into one.When people refinance, they take out a new loan to pay off several student loans. Not only can this process simplify your payments, but you may also lock in a lower interest rate and increase your repayment term options.A student loan refinance may be used for Direct Student Loans, private student loans, or a combination of the two.If you refinance your Direct Student Loans or Direct PLUS Loans with a private loan, you will lose the deferment, forbearance, forgiveness, cancellation benefits, and income-driven repayment benefits offered through the Direct Loan Program.The nice thing about these options is that you don’t have to choose one or the other.