Having multiple loans can be tough to manage – different amounts due, different payment due dates, and a lot more statements to keep track of.By combining your loans into a single loan, you can have one single bill, and you may even be able to lower your payments.

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Consolidating a federal student loan legality of backdating

Going back to our original situation, you could still combine your private student loans by refinancing, and you could consolidate your Federal student loans through the Direct Consolidation program.

That way, you could take advantage of the lower rates potentially offered through a private student loan refinance, while still maintaining your benefits on your Federal student loans.

On the other hand, if you are taking advantage of benefits of your Federal student loan, such as income-based repayment plans or forgiveness plans, you should not consolidate your Federal student loans into your private student loans.

Your Federal benefits will disappear if you do this, and you’ll end up owing the full balance of your loan over time.

However, several banks and services do allow you to combine your private and Federal loans into one payment.

Depending on your post-graduation experience, it may make a lot more sense to combine your loans together.

That would also reduce the total repayment over the lifetime of the loan – saving the borrower thousands in interest over the same 10 years.

The key here is to look at your own repayment situation and see if a lower interest rate is worthwhile.

For example, a ,000 Federal student loan at 6.8% will cost a borrower ,619 to repay – ,619 in interest.