Consolidating to a direct loan
offer benefits and protections that do not transfer to private lenders.
This is often the reason that people cite when they say you shouldn’t combine federal and private loans.
But if your income is over a certain threshold, you won’t benefit from these programs.
En Español Consolidation can assist you with managing your student loan debt.
Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.
These are clearly great programs for people who choose careers in public service or education, but if that’s not you, they won’t do you any good.
Estimate your monthly payments, principal, and interest.
Investigate cancellation, forgiveness, and discharge.
With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.This is particularly true for grad school borrowers who use unsubsidized Direct loans and Graduate PLUS loans to finance their education.