Consolidating Student Loans

What Is Student Loan Consolidation?

Student loan consolidation combines several smaller

loans into one large loan, which is used to pay off the

smaller loans. There are both Federal and Private

student loan consolidation options.

Federal Loan Consolidation

• Federal Loan Consolidation takes the average of your current interest rates and combines loans into one payment

• Free through the federal government• Loans made to the parent of a student cannot

be transferred to the student during the consolidation

• Repayment term can be between 10-30 years• Borrower can pick the servicer for the new

loan

Private Loan Consolidation/ Refinancing

• Refinancing is the same as private student loan consolidation

• Interest rate is based on your credit history• Private lenders can combine both federal and

private loans through refinancing• You may experience a lower interest rates

depending on finances• Federal repayment programs will no longer

apply

When it comes to consolidating or refinancing your student

loans it all depends on your financial situation. Take a look

at your finances and the options that are available to you.

If you have a choice, choose carefully.

What Will You Chose?

Visit FinLit.com for more information about student loan

consolidation.

Thank You