Consolidating a private loan with a federal loan
These benefits include deferment, forbearance, and loan forgiveness programs.If you have many federal loan services, consolidating into one loan will make your monthly payments much easier.However, keep in mind that loan forgiveness is rare, and it may not be worth holding off refinancing for.Since consolidation essentially allows you to pay off all of your loans as one, it combines all of the payments.
In many cases, you might be able to lower your interest rate and save money.
Since different private lenders take slightly different criteria into consideration while determining interest rates, private student loan refinancing requires more effort and research (as opposed to federal loan consolidation).
Like many choices in life, the option you decide to go with depends upon your current financial situation.
This is the weighted average of your previous interest rates rounded up to the next ⅛ of 1 percent.
Federal student loan consolidation does have its fair share of benefits.