Best rates for consolidating private student loans classic dating mistakes women make
Direct Consolidation Loans are overseen by the federal government and the U. If you have private student loans, on the other hand, you can only refinance or consolidate with another private lender.
You aren’t eligible for federal loan consolidation because your loans are already being handled by a third party.
If you have federal student loans, for example, you can choose between a Direct Consolidation Loan or refinancing with a private company.
Here are the main differences you’ll find when you start researching these two options. As such, they are only available for individuals who want to refinance federal student loans such as Direct Loans, Direct PLUS loans, and FFEL loans.
With student loan refinancing, on the other hand, you may be able to save money on interest if you are able to qualify for a new loan with a lower interest rate.
While refinancing and consolidation can often mean the same thing, the type of loans you have can dictate the options available to you.You can also sign up for income-driven repayment plans provided you meet income guidelines.Private lenders that allow you to refinance also allow you to choose a repayment plan that fits your lifestyle and goals.This can mean not having the option for deferment or forbearance and never being able to qualify for income-driven repayment programs in the future.Also, note that refinancing with a private lender is a one-way street.