Every private lender has individual terms for its consolidation loans, but many give you a means of releasing your cosigner from the loan obligation after a period of successful payments.
Often a cosigner is willing to help in the short term, but reluctant to commit to decades of responsibility for your loan.
Which Federal Loans Are Eligible For Consolidation? Your loan status must be in one of the following four categories: What Are My Direct Consolidation Loan Repayment Options?
If you are looking to consolidate or refinance because you’ve been unable to make ends meet, there’s a possibility you’re in a situation where your credit score may have already been dinged. First, let’s look at your federal student loan options.There is no fee to consolidate your federal student loans through the Direct Consolidation Loan program.Even if your loans are in default, you may be eligible for consolidation provided you: a.That single consolidation payment may be lower than your previous payments combined if your repayment term is longer, and consolidation can also decrease your interest rate.In general, you can consolidate your federal loans separately from your private loans. Department of Education serves as the lender for the Direct Consolidation Loans, with which you can consolidate existing Direct Loans, Federal Family Education Loans (made under the old FFEL program), PLUS Loans, and sometimes Perkins Loans.Legitimate lenders do not offer private student loan consolidation products to borrowers without acceptable credit history.