Consolidating federal student loan debt
Your monthly payments will be fixed on the standard plan, or start small and slowly increase on the graduated plan.
If you’re consolidating loans that are in a grace period, you can ask the servicer to delay processing your request. Once you’ve filled in all the required sections, you’ll have to sign and submit the application.
This is because you’ll finance the new student loan based on a variety of factors, including your income, debts, employment and credit.
Some debt relief companies offer to consolidate your loans for a fee, but this isn’t necessary. You’ll have to submit your name, address, Social Security number, driver’s license state and number, contact information and two references who’ve known you for at least three years. This information should be on your monthly billing statement.
“Never pay a fee to consolidate your student loans,” says Kantrowitz. You don’t need to consolidate all your loans, and doing so may be a bad idea in some circumstances.
Contact the servicer if you have questions about your application after submitting it. News recommends the following five top performers based on how they can address certain borrowers’ needs and their overall performance compared with other lenders.
No private student loan refinancer is perfect for every borrower. Overview: Common Bond was started by three Wharton MBA graduates in 2011.