Consolidating sallie mae and direct loans
We will analyze six of the top student loan servicers and give tips for how to pay off private student loans.Note about the updates: Since we first wrote this post, more information about the top private lenders and their repayment programs has become publicly available.Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.Sallie Mae loans can be consolidated with other federal loans, but not with private loans.For federal loan consolidation, the government allows multiple federal student loans to be combined into a single loan, lowering monthly payments.For instance, all our post originally said about Discover was that “Discover encourages struggling borrowers to call its ‘Repayment Assistance Department.'” We were vague because, well, Discover was vague too.But times have changed and the student loan crisis, the media coverage surrounding it, and government intervention have worked to create an environment of improved transparency and increased options for borrowers.
Consolidating allows you to merge multiple eligible loans into a single loan. You can consolidate all, just some, or even just one of your student loans.Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.These options are also available for federal consolidated loans.First, a student can elect for graduated repayment, which is a loan that has lower monthly payments initially, and then increases its monthly payments over a 10-year period.