Consolidating auto loans
However, you also could qualify when you leave school or are enrolled less than half-time.
You can’t consolidate private loans in the federal Direct Consolidation Loan program, but some private lenders allow you to consolidate federal and private loans together.
Private student loans are credit-based, meaning student borrowers with high credit scores will pay lower interest rates than those with low scores because banks assess the risk of each borrower.
The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.
If you’re using private lenders for student loan consolidation, there is a chance you could get a better interest rate and possibly lower monthly payments. These are private loans where credit score and other conditions are weighed in. Here are some things to consider when evaluating the prospect of student loan consolidation.
Sometimes what appears to be debt consolidation isn't.
For example, a debt management program (DMP) through a credit counseling agency allows you to make one monthly payment to the counseling agency, and in turn, the agency pays all of your participating creditors.