Consolidate student loans more than once – students and borrowing parents can consolidate their student loans. Students and parents cannot group their loans by grouping, since only loans from the same borrower can be grouped together. But they can consolidate their loans separately.
Students can consolidate their student loans only during the grace period or after the loan repayments have started. Loans in default but with satisfactory repayment terms may also be grouped together. Students can no longer consolidate while still in school. Parents can, however, consolidate PLUS loans at any time.
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the loan term can be extended from 12 to 30 years. The lower monthly payment may make loan repayment easier for some borrowers. However, by extending the term of a loan, the total amount of interest paid over the life of the loan is increased. The search for all the information is the best way to find a loan.
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You can potentially save money by consolidating your student loans, even if you’ve done this before. Here’s what you need to know about debt consolidation.
Consolidating student loans has many advantages, especially if you have federal loans. By consolidating your loans, you can change your term and loan servicer while maintaining the borrower protections and payment options that federal loans offer. Also, if you consolidate student loans more than once, it can help lower your interest rate and you have the option of switching private student loans to federal loans.
To consolidate your student loans, there are a few things you need to know. First, consolidation is different for private and federal loans. If you have private loans, the process is called student loan refinancing. This can lower your interest rate, change the term of your loan, and switch lenders. Student loan refinancing is always done with a private company and allows you to combine federal and private loans.
Federal Student Loan Consolidation? You can do it more than once
There are two scenarios in which you can consolidate your government student loans more than once:
- You have already consolidated loans under the Federal Family Education Loan Program, or FFELP, Consolidation Program.
- You have federal loans that were not included in a previous consolidation.
If you’re struggling to make payments on your FFELP loans, consolidating them into a direct consolidation loan can help get you out of default. If you have FFELP loans and want to enroll in the Civil Service Loan Forgiveness Program, consolidation is also required.
There are many other options available if you don’t qualify for consolidation but still want to lower your payments. Contact your student loan officer to explore income-contingent repayment, extended student loan repayment, or forbearance.
Student loan refinancing
There are a few things to consider if you want to reduce your student loan repayments. You may be able to consolidate your loans again or consider other repayment options, such as income-contingent repayment, extended student loan repayment, or forbearance. Talk to your student loan officer to see what might be best for you.
However, refinancing transfers federal loans to a private company, which will cost you all the benefits associated with government student loans.
Here’s what you’ll typically need to qualify for student loan refinancing:
- A credit score in at least the high 600s.
- Regular income.
- A debt-to-income ratio below 50%
Consider refinancing with a cosigner who meets the lender’s requirements, if you don’t qualify on your own.