But, as with most rules, there are some exceptions.Here’s when a Direct Consolidation Loan may be your best bet: However, if you are a good candidate for refinancing, and you don’t qualify for any of the above government forgiveness programs, refinancing with Earnest could save you thousands — even tens of thousands — of dollars.One of the main points of confusion is that the word consolidation is often used to mean EITHER consolidation OR refinancing.
It’s a tricky question both because there are a lot of variables to consider and because there’s a lot of misinformation out there about exactly what student loan consolidation is and how it can help you.
You can apply to consolidate your federal student loans at Student
Pros: Refinancing combines your student loans into a single loan.
The purpose of this article is to walk you through the process of understanding exactly what direct consolidation loans are, when they make sense, and when they don’t.
Keep in mind that consolidation your federal student loan debt could end up making you ineligible for some of the best benefits programs on offer, so it’s something that should be approached with caution.
When you consolidate federal student loans, that means you’re combining multiple student loans into a single, larger loan, which simplifies your monthly payments (leaving you with only one instead of multiple monthly payments).