Consolidating private student loans with bad credit

27-Dec-2016 04:34

The last section is dedicated to identifying the best private consolidation loans for those with a few different financial profiles.

There are two types of consolidation loans: federal and private, and they each come with distinct advantages and drawbacks.

Student loan debt is a grave concern in modern America.

Private and federal loans can both be refinanced with a private consolidation loan.Only loans that are in repayment or in the grace period are eligible for consolidation, and a Direct Consolidation Loan must include at least one Direct or FFEL Program Loan.Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income-driven repayment plan (where the payments are based on the income of the borrower).Federal consolidation loans can only be used for federal student loans, but private consolidation loans can be used for both federal private student loans.Consolidation loans repay old loans with a brand new loan that has its own unique terms and conditions.

Private and federal loans can both be refinanced with a private consolidation loan.

Only loans that are in repayment or in the grace period are eligible for consolidation, and a Direct Consolidation Loan must include at least one Direct or FFEL Program Loan.

Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income-driven repayment plan (where the payments are based on the income of the borrower).

Federal consolidation loans can only be used for federal student loans, but private consolidation loans can be used for both federal private student loans.

Consolidation loans repay old loans with a brand new loan that has its own unique terms and conditions.

All types of federal student loans can be consolidated together except a Direct PLUS Loan that was taken out by a parent to help pay for a child’s education (student PLUS loans can still be consolidated).