March 3, 2009

Can you still consolidate student loans?

Posted in Consolidation tagged , at 3:28 PM by Joe From Boston


I’ve heard this question alot recently – during the current economic crisis, more and more lenders will not offer consolidations, and students hold up their hands in frustration and shout that no one will consolidate their loans.

Well, that’s not entirely accurate.  There is at least one place that will still consolidate loans that are not in default – Direct Loans, also known as the federal Department of Education.

Yes, Virginia, there is a Santa Clause and yes you can consolidate your loans if they’re still in good stnading.

So get your butts over to their website, ASAP and request information:

http://loanconsolidation.ed.gov/

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6 Comments »

  1. James said,

    Yes there are several possibilities considered in a student loan consolidation, the other option you have is refinance which is also available for bad credit holders… bad credit student loans

  2. Top Way To Get The Best Student Loan Consolidation Rates

    It is very frequent in today times to find that you are graduating from college with a number of student loan debts. When you start looking at all of your loans, the refund terms, and the interest rates; it can quickly become awesome. Nevertheless by looking at student loan consolidation rates you might be able to save money and reduce the number of payments that you make on a regular basis…

  3. Jessica, with private loans you have far fewer options than with federal loans. Have you asked about an economic hardship deferment?

  4. Jessica said,

    I have private graduate loans. I am currently unemployed and pregnant. I have applied for an economic hardship forbearance twice now and have been denied both times. They will not give me a forbearance because I am unemployed and cannot show how I will resume payments. I have been working with their loan specialist and he has no other advice for me. I am trying to avoid defaulting. What options are available to me?

  5. Yes, Amanda, it’s for federal loans only. You do NOT want to consolidate your private with your federal loans, as you lose all the benefits from a federal loan.

    Private loan consolidation has disappeared over the past 12 months thanks to the banking crisis, though there are rumors that a few companies are trying to come up with a private loan consolidation that is economically viable for them. Until then, your only options are deferment, forbearance, and alternative repayment plans, if available.

  6. Amanda said,

    But this (Direct Loan) is for Federal student loans only, not private, correct? What do I do for private??


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