As of July 1, 2010, all new student loans, including consolidation loans, must be made under the Federal Direct Loan Program (FDLP).
A consolidation with FDLP will put all of your loans with one holder, the Department of Education.
When it comes to student loans, however, the refinancing picture is more complex.
The reason is that today’s student loans are actually a combination of Federal and private loan programs, and to help alleviate explosive levels of student loan debt (the total of which now exceeds all outstanding revolving credit card debt in the U. ), Federal student loans are getting access to multiple forms of “flexible” repayment plans.
Refinancing your student loans is easier than you think and many Millennial Money readers have refinanced, saving hundreds of thousands of total dollars in interest.
To get you the best rate, I personally worked with Credible and Lend Key to get the best available rates for you.
Do you have loans with more than one lender or servicer? If you answered yes to either one of these questions, you may want to consider consolidating your federal student loans.
With consolidation all of your individual federal student loans are paid off and one new loan is created for you.
If you want to save time and check your rate now, I recommend using Credible.
They work directly with many lenders and help you compare real rates from each of them quickly. To make it easier to refinance I’ve put together this Student Loan Refinancing Guide to break down the process of student loan repayment.
Refinancing debt to consolidate multiple loans into a single one is a standard of debt management.