In those cases, you may be able to have another go at it.The following types of loans are eligible for consolidation: Yes, a married couple can jointly consolidate their loans, but it may not be a good idea.When you opt for student loan consolidation, you’re working with a lender who will pay off your existing balances.They will, then, replace those loans with a new, consolidated loan and a new monthly payment.Private consolidation lenders, on the other hand, are not subject to those terms and may include variable rates and any number of fees.What’s more, some benefits of a federal consolidation loan, such as interest subsidies on deferred loans, are not available on private loans.Timing is everything: You’ll need to complete all the paperwork and have it processed and approved before repayment begins.
If you don’t care about the extra cash and just want a consolidation for the simplicity of a single monthly payment, you can use any money you save to pay down the principal.
These, in turn, can yield more possibilities as far as reducing your monthly payments and total amount of student debt.
A good credit history is also ideal if you are planning to refinance.
Yet despite the appeal — and its popularity — student loan consolidation isn’t for everyone.
Here are some frequently asked questions and answers that may help determine if it’s the right move for you.