While you can’t combine your private student loans with federal loans into the Direct Consolidation Federal Loan, you may find that a private loan consolidation will accept your federal loans.However, most sources advise against consolidating federal and private loans together. For instance, Discover Student Loans offers a number of repayment assistance options, including deferments, extensions, forbearance, and hardship to help borrowers repay their loans.One option you have when you begin tackling your student loan debt is to explore loan consolidation.
However, the review of research evidence detailed in this brief suggests that a century of consolidation has already produced most of the efficiencies obtainable.
Research also suggests that impoverished regions in particular often benefit from smaller schools and districts, and they can suffer irreversible damage if consolidation occurs.
Choosing to consolidate your loans is an individual choice and the right decision will depend on the specifics of your loans — the types of loans, interest rates, balances, borrower benefits, and more — as well as your current financial situation.
It’s important to remember that there are different types of loans — most significantly, there’s a big difference between federal loans (those issued by the U. government) and private loans (those issued by a bank, credit union, or other lending institution).
If you consolidate your federal and private loans with a private loan provider, you may lose your chance to enroll in income-based repayment options or to apply for a deferment if you become unemployed, experience an economic hardship, or experience other circumstances.