Three of them are Federal student loans and two of them are private. Here is what you need to know about consolidating and refinancing your Federal and private student loans together.Consolidating multiple loans into one single loan can really help borrowers who prefer to have a simple, single payment for their student loans.When you consolidate your Federal student loans, you go through the Direct Consolidation Loan program.
Most people take advantage of the Federal programs because they are having trouble managing their debt burden and a lower payment will help.
The average age of credit union members is around 50, so offering student loan consolidation is a way to attract a younger customer base.
Some credit unions and banks even offer discounts on interest rates if you become a regular customer or if you enroll in an automatic payment program.
Most people have heard of loan consolidation because of the Federal programs that are available and often believe that private loan consolidation works the same way, which is, unfortunately, not the case.
In the Federal program, virtually everyone is eligible because their old Federal loans and the new Federal consolidation loan do not require a credit score for approval.
Rates on the loan will vary depending on your credit history, credit score and debt to income ratio, among other factors.