Consolidating private loans into a private consolidation loan may be a good idea if you think you can get a better deal. However, it is very dangerous to consolidate federal loans into a private consolidation loan. You will lose your rights under the federal loan programs once you cho
Only in rare cases, including if you have new loans to consolidate that were not included in the first consolidation loan, if you are in default on a FFEL consolidation loan or if you want to get into the public service forgiveness program.
Consolidation is used to reduce and simplify monthly payments by rolling multiple loans into one. However, it can also lengthen the period of repayment and therefore increase the total amount you will pay in interest over the life of the loan. Learn more about the pros
Guaranty agencies are state or private nonprofit agencies that administer the federal guaranteed loan program. The agencies insure federal student loans against default and pay off lenders when borrowers default. They also try to collect from borrowers. Guaranty agencies will st
Anyone who is enrolled in a degree, certificate, or other approved program at an eligible school and is a U.S. citizen or eligible non-citizen. In addition, in most cases, borrowers must have a high school diploma or equivalency. There are other criteria, including prohibitions
Banks and lenders – not Congress – set the interest rates, loan limits, terms, and conditions of private loans. They usually carry higher, variable interest rates, and lack the flexible repayment options of federal loans. More info.
Please understand that we do not provide legal advice about individual cases. This web site includes links to other resources for those who seek individualized legal advice or other help not offered here. This site is for people who already have student loans and want to know more about their options and rights.