Multiple student loans can be a huge burden, and managing them individually is also extremely complicated.For individuals with multiple student loans, consolidating those loans can help you in a number of ways; not only does student loan consolidation help with decreasing your overall interest payments, it can also help you to avoid missed payments and the complication of making multiple payments.Some private lenders offer certain forms of relief to borrowers who are struggling to make their student loan payments (such as forbearance plans, repayment assistance, and other relief), but these options are available at the sole discretion of the lender. If you don’t know whether your student loans are private or federal: Each private lender has different criteria.Most lenders require the borrower to be a citizen of the United States (or a legal resident), and to meet certain credit, employment, education, and income requirements.Student loan consolidation allows borrowers to combine multiple loans into a single, new loan with a new interest rate, repayment options and terms.It's important to keep in mind that there are distinct federal and private options for consolidating student loans.
Rates can be variable or fixed, with loan durations of five, 10, 15 or 20 years.
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.
Student loans are tough, and they present borrowers with heavy debt burdens after college.
But while there are a growing number of options available to consumers, most student loan forgiveness programs and other repayment plans are only available to those with federal student loans.