Consolidating student loans through federal government
At Earnest, we can take all of your loans (private and/or federal) and consolidate them into one when you refinance.
The end result is a loan with a single, better interest rate based on your financial potential.
If you have private loans, or a mix of federal of private, you can consolidate by taking out a new loan through a private lender. Because consolidation works a little bit differently depending on which types of loans you have, we are going to tackle consolidation from several different angles: However, it's important to know that the interest rate on your Direct Consolidation Loan is not always lower.
Instead, the rate is calculated by taking the weighted average of the interest rates on your existing loans and then rounding up to the nearest one-eighth of 1%. So, i the Federal Loan Consolidation Information Call Center at 1-800-557-7392.
There are four types of Direct Loans available: Federal student loans are an investment in your future.
On July 1, 2014, the HEAL Program was transferred from the U. Department of Health and Human Services (HHS) to the U. The making of new HEAL Program loans was discontinued on Sept. Borrowers who have HEAL Program loans and members of the community may obtain more information as outlined below.
Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.
Your consolidated interest rate would be the weighted average of all the interest rates of the loans you are combining.
If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Department of Education’s federal student loan program is the William D. Even though you don’t have to begin repaying your federal student loans right away, you shouldn’t wait to understand your responsibilities as a borrower.
Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Department of Education responsible for Health Education Assistance Loan (HEAL) Program loans? Get the scoop: Watch this video about responsible borrowing or browse the tips below it. Based on the results of your FAFSA form, your college or career school will send you a financial aid offer, which may include federal student loans.
Consolidation might still be a solid option for federal debt holders looking to simplify their payment process.
If you are not in a position to benefit from these programs, and you have improved your financial standing since graduation, consolidating and refinancing to a lower interest rate with a private lender could be a great way to save time and money on your student loans.
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Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Your school will tell you how to accept all or a part of the loan.