Consolidating federal graduate loans
However, you can pick the lower payment today if you want, and then make larger-than-required payments if your income increases. The lender simply repackages your loans so they have the characteristics mentioned above (fixed rate, etc.). You might have several loans—one for each enrollment period, so be sure to get them all.If you’ve only used one lending source, you may have limited options on who to consolidate with. government are always more borrower-friendly than private student loans. You cannot consolidate student loans with your spouse, but joint consolidation was possible before 2006.Here are the main differences between federal student loan consolidation and student loan refinancing. Student Loan Consolidation with the federal government Federal student loans are the only student loans eligible for a Direct Loan Consolidation.
Keep in mind that lowering your monthly payments (by extending the repayment period) will end up costing you more interest over the long term.
Depending on your circumstances, these may or may not be that interesting to you.
If you’re not worried about rising interest rates, for example, then you might not care about getting a fixed rate.
What's more, if you combine loans and one of you should die, the surviving spouse will be required to pay off the deceased’s loan.
In addition, you will have an unpleasant time if you get divorced and have your loans held jointly.The purest form of consolidation is only available for federal loans, but it is possible to combine private loans.