Department education consolidating private loans
The Federal Direct Consolidation Loan program does not consolidate private loans into Federal loans.However, several banks and services do allow you to combine your private and Federal loans into one payment.This is one of the best ways to lower your current payment on your Federal student loans.If you want to combine your private student loans together into one payment, you have to refinance your student loans.
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.
Consider the following resources to help you determine if and when consolidating might be the right option for you: If you have questions about the number of loans you have borrowed, the amount of each loan, or your outstanding balance(s), check with the My Federal Student Aid website or National Student Loan Data System (NSLDS).
One of the biggest myths when it comes to student loans is whether you can combine your Federal and private student loans. Well, since the middle of 2014, you can actually refinance and consolidate both your Federal and private student loans into a single loan with many private lenders.
Depending on your post-graduation experience, it may make a lot more sense to combine your loans together.
One situation that is very common is the graduate who has Federal student loans but is just on the standard repayment plan.