Re consolidating federal student loans
A private consolidation loan is a private student loan that combines and refinances multiple education loans into one new loan with a new interest rate, repayment term and monthly payment amount.This could result in a lower interest rate and/or a lower monthly payment.To reduce the cost of borrowing, you can make additional payments without penalty.You have the option to consolidate your federal and private student loans into one loan and monthly payment.Once you have decided to consolidate your existing federal and/or private student loans, you will forego the features and benefits associated with those loans.You need to qualify for the consolidation loan on your own.However, once your loan is disbursed, and we pay off your existing loans, the process cannot be reversed.
If you choose to consolidate loans that currently have a cosigner, your cosigner will no longer be responsible for the loans you include in your new consolidation loan.Find out if student loan consolidation is right for you.You will have 30 days, from Approval Disclosure, to accept the loan terms and a three-day right-to-cancel period, following Final Disclosure, before the consolidation is complete.You'll have the option to choose between a fixed or variable interest rate.
If you have a fixed rate loan(s) and are considering refinancing your loan(s) into a variable rate consolidation loan, you may receive a lower interest rate, but your rate may change if the rate index changes.
We recommend you compare your current loan terms against the consolidation loan terms.