You typically need a credit score at least in the mid-600s to qualify, and rates range from around 2% to more than 9%.
Consolidating all your debts into one loan might appear to make life easier but there might be much better ways of dealing with debts.
Federal loan servicers are private companies that manage federal loans for the Department of Education.
You can choose one of four servicers for your new direct consolidation loan: Fed Loan Servicing, Great Lakes Educational Loan Services Inc., Navient and Nelnet.
There are two types of student loan consolidation: federal and private.
Here’s how: » SIGN UP: Get a free plan to ditch your debt Federal student loan consolidation basics How to consolidate federal student loans Student loan refinancing basics Compare student loan refinance lenders When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.The tool shows you how much you’d pay per month on the various plans.If you choose an income-driven plan, you’ll be asked to provide income information on the application by granting access to your IRS tax information.Find out more about how debt consolidation loans work, then get free debt advice before you make a decision.If you’ve got lots of different debts and you’re struggling to keep up with repayments, you can merge them together into one loan to lower your monthly payments.
You might be offered a secured loan if you owe a lot of money or if you have a poor credit history.