In many cases, consolidation stretches the term of the loan, so you may actually pay more in interest over the life of the loan.
That figure is important if you are eligible for the student loan interest tax deduction.Although the deduction will not save you a lot of money, every little bit helps.We will never solicit consumers by phone or by email. Further, no legitimate lender will ever tell you to wire money to them in advance of a loan, for any reason.Although your school gave you some information when you took out your student loans, they may not give you the full scoop on student loan consolidation after you graduate.If you wonder, “How do I consolidate my student loans? Until mid-2007, most people with student loans received numerous offers to consolidate their debts.
Due to a change in federal lender subsidies, many of these solicitations have stopped, but that does not mean you cannot consolidate your college loans.If you have Federal Stafford, PLUS, or Perkins loans, you can consolidate them together.Private loans may be eligible for consolidation, but not all lenders agree to become part of a consolidation.In most cases, it is not possible to combine federal and private student loans in a student loan debt consolidation loan, due to the differences between loan terms.Consolidating federal student loans is a fairly straightforward process.Consolidating private loans is more difficult, but it can be done.