Re consolidating federal student loans
If the servicer delays processing, you won’t have to make your first payment until the end of your loan’s grace period. You can submit it online or mail the completed paper application to one of the servicers that manages Direct Consolidation Loans.The servicer you choose for your consolidated loan will inform you when it pays off the existing loans, at which point you can stop making those payments and start repaying your Direct Consolidation Loan.Some debt relief companies offer to consolidate your loans for a fee, but this isn’t necessary. You’ll have to submit your name, address, Social Security number, driver’s license state and number, contact information and two references who’ve known you for at least three years. This information should be on your monthly billing statement.“Never pay a fee to consolidate your student loans,” says Kantrowitz. You don’t need to consolidate all your loans, and doing so may be a bad idea in some circumstances.Contact the servicer if you have questions about your application after submitting it. News recommends the following five top performers based on how they can address certain borrowers’ needs and their overall performance compared with other lenders.No private student loan refinancer is perfect for every borrower. Overview: Common Bond was started by three Wharton MBA graduates in 2011.When you refinance your loan, you can choose a five-, seven-, 10-, 15- or 20-year term.Common Bond will match your federal loan deferment period if you graduated the same year you apply and your loans are currently in grace period deferment.
It partners with Pencils of Promise, an education nonprofit, to fund the education of a child in the developing world each time it funds a new student loan in the U. Best Features: Common Bond allows qualified borrowers to release a co-signer, and children can refinance parent PLUS loans into their name.It’s not difficult to qualify for federal student loan consolidation, but you do have to meet certain criteria.