The last section is dedicated to identifying the best private consolidation loans for those with a few different financial profiles.There are two types of consolidation loans: federal and private, and they each come with distinct advantages and drawbacks.(If you’re already well-versed in your consolidation options, but are looking for information on newer programs such as a Home Equity Line of Credit (HELOC) Refi, we’ve got that covered as well.) Student loan refinancing allows you to modify either one or multiple student loans with new terms, including a lower interest rate.You can combine both federal and private student loans, should you choose to do so. In contrast, student loan consolidation typically refers to the federal program known as the Direct Consolidation Loan; although sometimes people use the term ‘consolidation’ to simply describe the merging of many loans into one.If you are having difficulty making payments and want to see which options fit your specific situation, log in to your account and click Postpone My Payment to see which deferment or forbearance works best for you.
Subsidized Stafford loans and subsidized consolidation loans will not accrue additional interest, so your balance after the deferment period will be the same as when it started.Both deferments and forbearances give you a break from monthly payments for a set period of time.Many options are available to meet a variety of needs.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.