managing student loans
What About Loan Consolidation?
If you're struggling to repay or have fallen behind on student loans, loan consolidation may be worth considering. If you have lots of lenders, this approach simplifies things, because it reduces the number of payments you make each month. It may also reduce the overall amount you pay each month. Which is the best way to consolidate?
- Combine federal and private loans using a federal consolidation loan.
- Combine federal and private loans using a private consolidation loan.
- Keep federal and private loan consolidations separate.
"C' is correct. You can't consolidate private loans using a federal consolidation loan. If you consolidate federal loans in a private consolidation loan, you may lose vital federal repayment options, such as deferment, forbearance, and forgiveness.