Common Questions About Consolidation Loans…
- Can I consolidate my private and federal student loans together?
- What are private student loans?
- What are federal student loans?
- What are the most common types of eligible federal student loans?
Can I consolidate my private and federal student loans together?
No. We cannot consolidate your private and federal student loans together. Federally-backed student loans carry certain benefits that private student loans do not. Most of the federal benefits that come along with your federal student loans would be lost if they were combined together.
You can still consolidate both your private student loans and your federal student loans separately. And with the help of our highly trained loan consultants, we can make the process quick and simple for you.
What are private student loans?
Private student loans are non-federal student loans that were made for the sole purpose of paying for qualified higher education expenses.
There are many different types of private or alternative student loans offered by various lenders. The following are a few common private student loan examples:
- Sallie Mae Signature
- Wells Fargo Collegiate Loan
- Wells Fargo Education Connection Loan
- Wells Fargo MedCap Loan
- Citi Assist Loan
- CLC Premier Loan
- CLC Bar Loan
- Law Access Loan
- PLATO Loan
Please call one of our knowledgeable loan consultants to see if your loans qualify.
What are federal student loans?
Federal student loans are federally-backed, low interest rate loans used to provide financial assistance for higher education. Congress and the U.S. Department of Education create the rules and regulations associated with federal student loans.
What are the most common types of eligible federal student loans?
- Stafford Loans – Federal loans for students, both undergraduate and graduate. The current interest rate on loans taken out after July 1, 2006 is fixed at 6.8%.
- Subsidized – A subsidized loan is awarded on the basis of need. The federal government pays the interest on the loan until repayment begins and during authorized periods of deferment.
- Unsubsidized – An unsubsidized loan is available to students who do not qualify for a Subsidized Stafford Loan or need additional aid. Students will be charged interest from the time the loan is disbursed until it is paid in full.
- Perkins Loans – A campus based, low-interest subsidized loan for undergraduate and graduate students. The college or university acts as the lender using a limited pool of funds provided by the federal government and the school. The loans are awarded based on exceptional financial need and do not have origination or default fees. The current interest rate is fixed at 5%.
- Parent PLUS Loans – Parent PLUS loans are available for parents to supplement their dependent student’s education finance needs.
- Grad PLUS Loans – As of July 1, 2006 students enrolled in a graduate or professional program at least half-time are eligible for loans under the PLUS loan program.
- Federal Direct Loans – Education loans provided through the U.S. Department of Education.