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But unlike the federal government, they can consolidate both federal and private loans.
Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!
Consolidating allows you to merge multiple eligible loans into a single loan.
You’ll get a new loan term between 10 and 30 years, depending on your balance. A longer term also will result in paying more in interest.For example, the government’s Pay As You Earn (PAYE) and Income-Based Repayment (IBR) programs allow borrowers to make reduced monthly payments based on financial hardship.But if your income is over a certain threshold, you won’t benefit from these programs.Strongly consider lenders that offer the most flexibility on payments and multiple options for forbearance.Not everyone is a good candidate for private student loan refinancing.But you can always pay off your loan faster if possible, which will save money.The application takes most borrowers less than 30 minutes, according to the Federal Student Aid website. You must complete the application in a single session, so gather the documents listed in the “What do I need? If you’re considering either federal or private student loan consolidation in order to get a drastically lower loan bill, look further into income-driven repayment instead.Those include the option to tie payments to income and get loans forgiven if you work for the government or a nonprofit.If you have private loans only, or you don’t plan to take advantage of those federal protections, compare refinance lenders to get the lowest possible rate.Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.