Department of education consolidating federal loans

But if you switched majors, transferred colleges, or went on to graduate school, you may be among the 19% that owe ,000 and above, or the 5.6% who owe more than 0,000.Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.Choosing to consolidate your loans is an individual choice and the right decision will depend on the specifics of your loans — the types of loans, interest rates, balances, borrower benefits, and more — as well as your current financial situation.

The interest rate may not exceed the maximum rate of 8.25%.One option you have when you begin tackling your student loan debt is to explore loan consolidation.But before you head down that road, here’s what you should know.Paying for your education is a serious long-term financial obligation; that’s why comparing the costs of different ways of financing your education is so important.Private loans tend to have higher fees and interest rates than federal government loans.

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