The good news is that federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.
One of the best places to start looking is the federal Direct Consolidation Loan program.
Consider federal consolidation if you: When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
It’s simple, efficient and practical, but there are some negatives, not the least of which is that you could end up paying much more in interest by the time you’re finished.
There is no hard and fast rule about student loan consolidation, other than be sure to do your research.
These processes are often confused, but they’re very different.You typically need a credit score at least in the high 600s to qualify, and rates range from around 2% to more than 9%.Consider refinancing if you have: Refinancing federal loans into a private loan means losing consumer protections specific to federal loans.Those include the option to tie payments to income and get loans forgiven if you work for the government or a nonprofit.Like the federal government, private companies offer the option to consolidate multiple student loans into one.